ASX Grain Futures provide the Australian grain industry and associated consumer industries with an exchange traded risk management and trading tool. The five commodity markets listed on ASX Grain Futures are Milling Wheat, Feed Wheat, Feed Barley, Sorghum and Canola.
ASX Grain Futures provide agricultural producers, merchants and end users with a local offsetting risk facility. In order to manage price risk in Australian dollars and to minimise basis risk, ASX Grain Futures are benchmarked against local physical (cash) market prices. Participants are able to hedge, speculate or take advantage of arbitrage opportunities.
Michael Roche, Executive General Manager, Market Services, ASX said: “ASX is extremely grateful to receive this recognition from the Agri-business sector. The futures contracts have been well received by the market, with volume increasing steadily. The listing of grain options within the coming months is expected to further enhance the flexibility of risk management alternatives available for all participants in the Australian grain industry.”
John Davies, Partner, Ernst & Young and Member of Award judging panel and Award Presenter said: "Ernst & Young supports the Risk Management component of the Rabobank agribusiness awards in order to increase the awareness of effective risk management practices & how these directly correlate to increase stakeholder value. In winning the Risk Management award, ASX Grain Futures have established an innovative facility to manage price & basis risk and have had particular success in two commodity markets - Feed Barley & Milling Wheat."
In the first 17 months of operation, the market has demonstrated consistent and sustained growth and has two leading commodities in terms of volume traded – Feed Barley and Milling Wheat. The successful establishment of two commodities bodes well for future market development.
