Price now and stay in the market to express your bias.What is the Focal Point contract?• Focal Point is an add-on to an existing Cargill grain

contract that lets you stay in the market on grain you have already priced.

• Focal Point allows you to take a new position in the market up to three times.

• Gains or losses from a Focal Point contract are added to your contract’s final settlement.

• The market cost to enter a Focal Point contract is called the Focal Point Factor.

Purchase Contract terms apply. This is provided to you for information purposes only, does not constitute an offer, and is not intended to be a part of any contract that may be entered into. Please consult the Purchase Contract for the terms and conditions that will govern the sale and purchase of grain/oilseeds.

Information provided is general in nature and is provided without guarantee as to results. The information is not intended to be, and should not be construed as, trading, financial, legal, or tax advice. No warranty is made with regard to the information or results obtained by its use. Cargill Limited, its subsidiaries and affiliates disclaim any liability arising out of your use of, or reliance on, the information provided.

® The Cargill Logo is a registered trade-marks of Cargill, Incorporated, used under licence. © 2015, Cargill Limited. All Rights Reserved. AGH 1552

Why should I use Focal Point?• If you understand your market bias and are looking

for a hands-on approach to grain marketing.

• You should consider opening a Focal Point contract when you feel there is upside potential in the market.

• As your trusted partner, we’ll help you manage downside risk by establishing a trailing stop.

Focal PointGrain Marketing Contract

Initial Market Conditions

Futures Basis

Upside Potential in Market

Contract Focal Point

Focal PointAdjustment

Focal PointAdjustment

Focal PointAdjustment

What else do I need to know about Focal Point?• When you enter into a Focal Point contract, your grain

settlement will be split into two payments. The reason for the split is the downside risk of creating a new position in the market.

• Once you have delivered your grain, you will receive a payment for 70% of the deferred delivery contract value; the balance and adjustment will be paid once the Focal Point position has been exited and all grain has been delivered. A Focal Point position may extend past grain delivery, which will delay the second payment until the position has been closed.

• You do not have an absolute price floor with a Focal Point contract; this means you’re taking on price risk if the market goes down.

• You can track Focal Point on CargillAg.ca

Canola Example 1 Canola Example 2 Corn Example 1 (forex adjusted with basis)

How It WorksFocal Point

PRIC

E

07 J

UL

14 J

UL

21 J

UL

28 J

UL

18 A

UG

11 A

UG

04 A

UG

25 A

UG

01 S

EP

08 S

EP

15 S

EP

22 S

EP

29 S

EP

06 O

CT

13 O

CT

20 O

CT

27 O

CT

03 N

OV

460

440

420

400

520

$470

$460

$485Deferred Delivery

Initial Focal Point

Final Focal Point500

480

380

360

Nov Canola Futures

Gain

FuturesTrailing Stop*

PRIC

E

08 J

UL

15 J

UL

22 J

UL

29 J

UL

19 A

UG

12 A

UG

05 A

UG

26 A

UG

02 S

EP

09 S

EP

16 S

EP

23 S

EP

30 S

EP

07 O

CT

14 O

CT

21 O

CT

28 O

CT

04 N

OV

460

440

420

400

$470

$460

$447

Deferred Delivery

Initial Focal Point

FuturesTrailing Stop*

480

380

360

Nov Canola Futures

Loss $13

Final Focal Point

Dec Corn Futures

4.50

4.30

4.10

3.90

5.10

4.90

5.50

5.30

4.70

3.70

3.50

PRIC

E

03 A

UG

10 A

UG

17 A

UG

24 A

UG

14 S

EP

07 S

EP

31 A

UG

21 S

EP

28 S

EP

05 O

CT

12 O

CT

19 O

CT

26 O

CT

02 N

OV

$4.21

$4.50

$5.00

Deferred Delivery

Initial Focal Point

Final Focal Point

Gain

FuturesTrailing Stop*

On July 10, you establish a canola Deferred Delivery contract with Cargill for fall delivery: $470/MT futures – $20/MT basis = $450/MT cash. On August 20, referencing the November futures, you decide to enter a Focal Point contract at $460/MT (your Initial Focal Point Value) because you believe the November futures price will increase. To manage downside risk, you create a trailing stop at 5% below November futures.

Bullish In line with your bias, the market continues increasing over the coming months, and on October 1 you work with your Cargill representative to close your contract at $485/MT (your Final Focal Point Value.) The resulting gain is added to the settlement for your Deferred Delivery contract.

Here’s how we calculate your settlement:

$485/MT Final Focal Point Value

– $460/MT Initial Focal Point Value

– $3.50/MT Focal Point Factor

$21.50 Focal Point adjustment

+ Deferred Delivery value of $450/MT

Revised net return of $471.50/MT

Bearish While the market trends upward initially, it starts to trend downward at the beginning of September. On September 22, your trailing stop is triggered at $447/MT (your Final Focal Point Value). The resulting loss is deducted from the settlement for your Deferred Delivery contract.

Here’s how we calculate your settlement:

$447/MT Final Focal Point Value

– $460/MT Initial Focal Point Value

– $3.50/MT Focal Point Factor

-$16.50 Focal Point adjustment

+ Deferred Delivery Value of $450/MT

Revised net return of $433.50/MT

On August 10, you establish a corn Deferred Delivery contract with Cargill for November delivery: $4.21/bu futures – $0.40/bu basis = $3.81/bu cash. On September 20, referencing December futures, you decide to enter a Focal Point contract at $4.50/bu (your Initial Focal Point Value) because you believe that December futures price will increase. To manage downside risk, you create a trailing stop at 10% below December futures.

Bullish In line with your bias, the market continues to increase over the coming months, and on October 5 you work with your Cargill representative to close your contract at $5/bu (your Final Focal Point Value). The resulting gain is added to the settlement for your Deferred Delivery contract.

Here’s how we calculate your settlement:

$5/bu Final Focal Point Value

– $4.50/bu Initial Focal Point Value

– $0.06/bu Focal Point Factor

$0.44 Focal Point adjustment

+ Deferred Delivery Value of $3.81/bu

Revised net return of $4.25/bu

PRIC

E

03 A

UG

10 A

UG

17 A

UG

24 A

UG

14 S

EP

07 S

EP

31 A

UG

21 S

EP

28 S

EP

05 O

CT

12 O

CT

19 O

CT

26 O

CT

02 N

OV

4.50

4.30

4.10

3.90

5.10

$4.21

$4.50

$4.15

Deferred Delivery

Initial Focal Point

Final Focal Point

4.90

5.50

5.30

4.70

3.70

3.50

3.30

3.10

Dec Corn Futures

Loss $0.35

FuturesTrailing Stop*

Bearish While the market starts to trend sideways, at the end of September it begins to trend downwards. On October 10, the trailing stop is triggered at $4.15/bu (your Final Focal Point Value). The resulting loss is deducted from the settlement for your Deferred Delivery contract.

Here’s how we calculate your settlement:

$4.15/bu Final Focal Point Value

– $4.50/bu Initial Focal Point Value

– $0.06/bu Focal Point Factor

-$0.41 Focal Point adjustment

+ Deferred Delivery Value of $3.81/bu

Revised net return of $3.40/bu

Corn Example 2 (adjusted with basis)

For more information, please drop by your nearest Cargill location, contact your Cargill Representative or call 1-888-855-8558.

Important to note:The trailing stop is set at 5% below the futures. The trailing stop will rise with the market but never decline. The trailing stop can never be set to more than 10% below the initial Focal Point value. Please remember that your Focal Point settlement will be split into two payments.

Important to note:The trailing stop is set at 10% below the futures. The trailing stop will rise with the market but never decline. The trailing stop can never be set to more than 10% below the initial Focal Point value. Please remember that your Focal Point settlement will be split into two payments. *Focal Point price adjustment converted from USD to CAD at time of settlement.