CloudSmart
CloudSmart is a tailored service designed to spread the risks associated with grain marketing and ensure regular cash flow from grain sales over a set period. It does this via regular fortnightly incremental sales on your behalf.
The service allows our grain marketing team to target specific periods of market fluctuations and price spikes with the aim of maximising returns and outperforming the post-harvest average cash price. We will look to take advantage of events such as short covering rallies and increased shipping demand.
With CloudSmart, your grain can be marketed over a 3, 4, 6 or 9-month time frame. CloudSmart offers choice to growers, allowing exposure to as much or as little of the marketing year as they desire. There is also the ability to market different grades at chosen times. For example, for those wanting to take advantage of high H1 premiums during harvest/post-harvest, they can opt to have these tonnes sold prior to other grades that have less spread volatility.
While being more of a ‘set and forget’ strategy to grain marketing, it is important to note that a product such as CloudSmart can be best suited to certain market conditions, including;
- Low decile pricing post-harvest
- Futures hold a large short position
- A shipping programme that presents potential opportunities for demand spikes.
CloudBreak has the experience and knowledge to understand these key marketing conditions. We follow both the domestic and global market very closely, monitoring movements in futures, weather conditions across key growing regions, demand from key importers, and changes to the local shipping programme amongst other key price drivers.
