Comparing Wheat Pool Returns

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                                                               Thursday 2nd October 2008

            Comparing Wheat Pool Returns
 “Don’t get distracted by estimates and bonuses. It’s the final pool result that really matters,”
 says Plum Grove Harvest Pool Manager, Tony Smith.

 “One question I get asked a lot by growers is how to compare pool returns? Pools sell your grain over
 time, and a high estimate at harvest is not a guarantee of a strong end result. But growers often don’t
 see the final pool results because they come up to two years after the grain has been delivered.”

 “It’s the same with early bonuses. You’ve got to check the underlying pool return. A bonus isn’t worth
 much if the underlying pool isn’t performing. And the money for the bonus has to come from
 somewhere. If you enter a pool anytime after the first bonus period has ended, then you’re effectively
 sacrificing your pool return to pay out the bonus promised to early pool participants.”

 “The only true measure of a pool’s performance is the final pool result. What you get in your back
 pocket is what really matters.”

 Mr Smith manages the Plum Grove Harvest Pool. Last year’s Harvest Pool is currently outperforming all
 other 2007/08 pools by more than $25 per tonne for APW (at October 2, 2008). Mr Smith attributes the
 Harvest Pool’s success to careful pool management and a rally in prices post-harvest.

 “The Harvest Pool’s objective is to gain exposure to prices post-harvest. Last year the Plum Grove
 Harvest Pool increased by over $20 a tonne after harvest.”

  With conditions in world markets similar to this time last year Mr Smith says there’s a possibility of
 prices increasing after this harvest too. “With the expectation of more corn and less wheat being
 planted in the US next season, there’s a good chance of a price increase after harvest. With global food
 shortages now a reality it’s important growers maintain some exposure to post harvest rallies.”

  “Unlike other pools the Plum Grove Harvest Pool doesn’t have early contract bonuses. We use our
 experience and knowledge of the market to maximise returns to the pool through our pricing decisions,”
 says Mr Smith.

 Growers wanting to deliver to the Plum Grove Harvest Pool this year can do so by nominating Plum
 Grove as their acquirer. For a Guaranteed Access Contract or more information phone Plum Grove on
 1300 411 155.

 Media enquiries to Nathan Omodei on 9335 4773.

 Plum Grove Pty Ltd trading as Plum Grove Commodity Trading Solutions              Phone (08) 9335 4773
 Australian Financial Services Licence No: 231163                                  Fax   (08) 9335 6682
 A.B.N. 61 104 516 305                                                  
 PO Box 235 North Fremantle WA 6159                               

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