Prometey has for a long time not engaged in trade in cereals on FOB terms, but intends to take firm positions in this niche. Today’s realities show that one million tons of grain can not be sold only in the domestic market.
Today, the company employs a staff of 60 traders who specialize in foreign and domestic grain trade. Representative offices of Prometheus are in Zaporozhye, Cherkasy, Kirovograd, Nikolaev regions. Now there is a recruitment in the state for the Kiev office, which was opened half a year ago. The company needs active and purposeful traders.
Another positive factor for FOB exports is that the bank recently confirmed the Prometey line of credit, and now it’s possible to ship two Panamax ships a month. It is planned to make such shipment systematically on the terms of partnership in the Nikolaev port.
“Prometey” will not completely stop trading on CPT terms, because trade on this basis remains strategic for the company as it is well-grounded in the company, there are experienced specialists who are oriented in market realities. At the same time, FOB trade will be the main selling tool, and CPT will be an extension to export sales.
Promethea’s management does not frighten the risk of trading under the FOB, because the business is impossible without risk. The company plans to deal with hedging risks. It is also planned to link the physical, real market with trades on the SWOT Exchange in Chicago. That is to follow the movement of charts, to try to catch the moments of favorable prices. The company reported that it would probably have to sacrifice part of the margin, but will also be covered by forward and futures contracts.
“In 2016/17 MG, we came up with one million tons of purchased grain. In this marketing year, we plan to reach two million. Also in the plans of Prometey to bring grain transshipment for export to two Panamax vessels per month, for 50 thousand tons of grain each, “said Rafael Goroyan, head of the company.