In a year where volatility has driven the markets, causing unpredictable fluctuations in price, Frontier and its trading team have once again delivered great pools results for farmer members.
Frontier's April - June '12 feed wheat pool has recently paid out a impressive £166.36/t. Location premiums, where applicable, are added to this along with quality premiums for milling or biscuit grades.
Andrew Flux, grain procurement manager for Frontier said, "If we look at the top and bottom of the market during this marketing period, we see price differences of nearly £70/tonne - with the market moving by as much as £11/tonne some days. With this kind of volatility, managing risk is a complex task."
Frontier's strong and unrivalled international connections provide them with the kind of information required to accurately analyse trends and then make profitable marketing decisions on behalf of pools members. Using sophisticated risk management tools, their trading team develops and then protects pool values.
Their skill in doing this is demonstrated in these market leading results delivered yet again this period.
Mr Flux adds: "Placing a proportion of grain into a pool is all about managing exposure to risk. Time and again Frontier pools have demonstrated that they are an excellent means of shielding growers from the unpredictability of our marketplace. And not all pools are managed to the same effect or deliver the same results. In some cases we know that our result is up to £15/tonne better than comparable pool performance. Farmers who choose the Frontier pool are rewarded with a consistently good price for their grain. The graphs we're publishing today show that for the vast majority of this period, the pool price has far outstripped the ex-farm price.
"With 75% of all grain marketed post harvest and only a handful of days where the ex-farm price was better than our pool price, this really is a remarkable result."
Below are graphs illustrating how the Frontier's pools were managed for this marketing period.