Marketing pools are a low risk marketing strategy, leaving the marketing to Paul Toseland Grain over a set period. Various pool periods are available offering movement to specific periods. Interim payments are made to ease cash flow.
This an ideal marketing tool for those growers wishing to fix a base price (for budgets etc) but giving some of any potential upside, without the cost of an option.
The grower has an input as to what price, and when, the price is fixed within the price range of the contract.
Please contact the office for details. Not always available.
Call Options allow the grower to take advantage of any price gains and should be done at the time of selling physical wheat.
Put options are used to protect any unsold wheat from any price falls. The grower pays a premium, which is best described as insurance premium, which buys the right to take advantage of market volatility.
Please contact the office if you wish to discuss options and their use. We will then visit you to go through the practical implications of using options and futures, as a marketing tool to place a hedge against your physical wheat.
If you require more information or question about our Pools, call 01778 395388 or email us below.