Fixed Price Market Order:
This is when a grower specifies an amount of bales they would be happy to sell at a nominated price and are generally placed as a Good Until Cancelled Order (GTC). This can be done as Cash or Daily Pool.
An indicative cash price in $A per bale is offered daily (price is published in our Daily Market Report or via sms.) This price is calculated with reference to the current New York Stock Exchange Futures Price the AUD/USD exchange rate and a set basis level. Cash sales are paid 14 days ex ginning and the amount of bales is fixed.
Daily Pool Offer:
This product is similar to the cash offer with the exception of two aspects:
- The basis component of the contract price is indicative only; and
- Payments to you are made in accordance with a pool payment schedule fixed by Namoi Cotton at the beginning of the season.
Force Majeure options (Cash/Daily Pool):
Subject to approval you may elect to accept each of the above products on a force majeure basis. Force Majeure refers to a situation whereby circumstances beyond your control (such as drought, flood or a storm event) limit your ability to deliver the committed number of bales. In such circumstances Namoi Cotton may bear the production risk in exchange for an adjustment to the price on offer.
The grower specifies an amount of bales in consultation with their Customer Engagement Accounts Manager to be placed in a warehouse contract. These bales are committed to Namoi Cotton however they are unpriced. There are no fees attached and if the grower chooses, an interest free advance may be offered on the bales. This allows the grower to have their cotton fully ginned and gives them the opportunity to delay pricing until the day prior to the first notice day of the December contract which is in November each year.