SYDNEY, AUSTRALIA — GrainCorp said on July 16 that it has finalized the 2011-12 season Pre-Harvest Optimizer and has opened its Pre-Harvest Optimizer product for the 2012-13 season.

The Pre-Harvest Optimizer is designed to allow participation in the pre-harvest market, flexibility to capture market upside, and also to reduce the impact of downturns. The product also provides the security of a capped washout fee, GrainCorp said.

2011/12 Pre Harvest Optimizer FOB returns for key grades were:

• APW1 NSW, Queensland, South Australia: A$285

• APW1 Victoria: A$282

• APW2 Western Australia: A$302

“We are extremely happy with these results. From our analysis, the returns are a significant premium to the cash market at the last harvest and throughout the 2012 season, prior to finalization,” said GrainCorp Pools Manager Stuart Clarke. “We encourage growers to visit our online calculator to see the results for themselves. Grain markets have rallied significantly over recent weeks, responding to severe hot and dry weather throughout the U.S. Corn Belt, as well as concerns over the Black Sea region’s crop prospects.

“There are opportunities to capitalize on the current production uncertainty in the northern hemisphere; however a growers’ own production certainty must also be taken into account. The benefit of the Pre-Harvest Optimizer is that it enables grain marketing during this period, but reduces the production failure risk, which is important while production is still some way from being certain.”