WA Wheat - Tender Advice Example
The following table provides an explanation for an example tender advice notice. The tender advice is issued to the buyer and seller of the WA Wheat once delivery is completed.
|Number of contracts||50||One contract = 20 tonnes (1000 tonnes)|
|Value||$244,720||= Gross Price * Tonnage|
|GST||$ 24,472||10% of value|
|Total Value||$269,192||GST Inclusive|
|S&H Company||CBH||Name of accredited bulk handler|
|Location||Kwinana Terminal||Destination Site|
|Protein||10.50||As per Quality Average* data for wheat nominated to Destination Site.|
|Shrinkage||0.5%||As per S&H Agreement|
|Futures Price||$230||As settled on ASX on day of tender|
|less GTA Location Differential||-$0.00||GTA Location Differential**|
|add or subtract Protein Adjustment||+$3.00||$0.60 premium or discount for every 0.1 above or below 10% (capped at 11.4%)|
|add Receival Fee||+$10.50||As per S&H Agreement (based on Tier 1 Site rate)***|
Free in Store Price
|$243.50||= Up Country Delivered + Protein + Receival Fee|
|Gross Shrunk Price Free In Store||$244.72||= Up Country FIS / 0.995|
* When grain is initially received at a bulk handler depot, it is tested and the results are recorded. At the completion of harvest, each Destination Site has an average of the grain characteristics for each grain type nominated to that site. When a futures contract is tendered and the grain is transferred from one party to another, the transfer and any associated premium and discount adjustments are based on the quality average characteristics. Under the CBH Grain Express system, the quality average applied is based on the tonnage nominated to the Destination Site, in this case Kwinana Terminal. This is an example number only.
** GTA Location Differentials are reviewed annually, effective October 1. In this example, Kwinana Terminal is the Destination Site so no Location Differential has been applied. This is an example only from 2011/2012 and may differ from the prevailing rate.
*** S&H Companies review fees annually. This is an example only from 2011/2012 and may differ from the prevailing rate.