Introduction
Financial contracts represent your futures or other financial hedging positions. The Position Report incorporates them so you can see how your financial hedges relate to your physical grain exposure.
What is a financial contract in AgriChain?
A financial contract records a futures trade, typically on an exchange such as ASX Grain Futures. It captures the commodity, expiry month, quantity, and price. Financial contracts with a status of Open are included in the position report.
Where financial contracts appear
By Type, By Season, and By Grade views: financial tonnage is shown alongside physical in the Financial column.
Forward Grid: financial contracts land in the column matching their expiry month, so you can see how hedges align with your delivery schedule.
By Counterparty: financial contracts are not shown in this view.
Hedge Coverage
The Hedge Coverage card in the summary bar shows the percentage of your net physical position that is offset by financial contracts. A higher percentage means more of your physical exposure is hedged. When viewing across multiple commodities this card is labelled "Least Hedged" and highlights the commodity with the lowest hedge coverage.
Selecting the right futures contract
When creating a financial contract in Agrichain, the futures contract dropdown is sorted by open interest (the number of open contracts on the exchange). The contract with the highest open interest is selected by default, as this is typically the most actively traded and liquid contract for hedging purposes.
Notes
- Only financial contracts with Open status are included in the position report.
- Financial values in the report are not clickable there is no drill-through to a filtered contract list for financial positions.
- Gross/Net mode does not apply to financial contracts — they always show their full quantity.
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