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Dear Farmer
Welcome to Issue 13 of AACL's Grain Co-Production Updates.
2011 Grain Co-Production Offer Details
AACL Pty Ltd (AACL) continues to generate payment offers for wheat, barley and canola Grain Co-Production (GCP) contracts for the 2011 season. Capital for 2011 is guaranteed via the 3 year funding and marketing agreement with Glencore Grain Pty Ltd (Glencore).
The process of finalising seeding payments to 2011 contracting farmers is underway subject to farmers providing all of the required information.
Critical documents that should be returned to AACL to ensure orderly processing of seeding payments, include:
- Correctly signed Farmer Management Agreement and Farm Lease Agreement schedules.
- Land Owner Acknowledgement letters providing consent from the Land owner to the existence of the GCP contract.
- Current season financials.
Seeding payments are made in two parts. 50% is paid once all of the necessary and correctly signed and completed documents are returned to AACL. The remaining 50% is paid when seeding is complete and the Seeding Declaration Form is returned to AACL.
For further details, please contact your Regional Area Manager.
Grain Marketing - Update
MARKET UPDATE - 2011 SEASON
Unfavourable May weather conditions in addition to the current critical condition of crops globally is placing stress on the market. Further developments in May will play a significant role in providing a clearer picture for corn and wheat.
Around the world, drought conditions in Kansas and Texas is impacting on the winter wheat crop which is now close to harvest, planting of the spring crop in Canada is being delayed by wet and cold weather conditions and dryness is affecting some crops in Western Europe.
Locally, Australian grain prices are weighed down by an incredibly strong Aussie dollar in contrast to the flagging US dollar.
AACL 2010 SEASON NOMINATED GCP GRAIN PRICE ESTIMATES - FOB
On 21 April, AACL made a distribution of up to 80% to farmers that qualified for a bonus for the 2010 season's crop. The distribution was made on the below indicative GCP price which remains unchanged from the previous grain marketing update sent 4 April.
WA SA VIC NSW
Wheat - APW 345 335 335 335
Barley - Feed 270 261 261 261
Canola - Non GM 595 575 555 555
- Click here to view the current 2010 Estimated Pool Returns.
- Click here to view the FOB and finance costs (unchanged from November 2010).
- Click here to view the 2010 Receival Sites and Freight Rates. AACL contracted grain can only be delivered to these approved sites.
As previously advised, AACL is aiming to make further distributions on 25 July and 25 October. On these distribution dates, AACL may be able to increase the amount distributed to farmers from the 80% made in April. It is also AACL’s intention to finalise the pool by 25 July, however this will be dependent on market conditions.
Agronomy Update
2010 SEASON
The 2010 season harvest is slowly coming to an end with 100% of contracted crop now harvested. AACL anticipates the limited tonnage currently stored on farm will be delivered into the grain handling system over the coming months.
2011 SEASON
Pre-season agronomy visits, via internal and external agricultural resources, are underway for 2011 contracted farmers with 62% of visits completed.
Sowing of the 2011 crop has started in some areas. It is important that farmers adhere to the Crop Management Policy (Annexure B – 2011 Farmer Management Agreement, Farm Lease Agreement Terms and Conditions), and advise AACL in regard to the following:
- Of your intent to start seeding of contracted paddocks and the paddocks that seeding will occur in.
- Of your intent to undertake dry seeding of contracted paddocks and the paddocks that seeding will occur in. Dry seeding paddocks will need to be suitable as per the Pre-Season Agronomy Inspection prior to AACL agreeing to the request.
- Of seeding completion so AACL can then forward you a Seeding Declaration Form to review and confirm the paddocks that have been seeded.
If a farmer is unsure at anytime of their adherence to the Crop Management Policy, please contact your RAM or Grower Services to discuss.
2011 GCP Project - Investor Update
The opportunity to invest in the 2011 Grain Co-Production Project is now available to the retail investor market. AACL aims to raise a further $10 million to supplement the $57 million already secured for the 2011 season. For further information on the 2011 Project, its features or to download the Product Disclosure Statement, click here.
Should you have any other questions in regards to this email, please contact your Regional Area Manager or Grower Services on 13 000 GRAIN (47246).
Yours sincerely 
Simon Foley
GENERAL MANAGER - PRODUCT SERVICES
AACL Pty Ltd
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