Grain trading already runs on grade, location and delivery month. Michael makes the swap side of that equation standard, verifiable and free of the bespoke drafting that usually eats the margin.
The Complication
A wheat contract is not just a tonnage figure. Protein content, moisture and test weight define the grade. That grade is worth what it is worth at a specific terminal, in a specific month. VerifyHub encodes all three dimensions as structured swap terms, not fine print.
| Parameter | What it affects | Typical range |
|---|---|---|
| Protein content | Milling vs. feed grade classification | ≈9–15% depending on class |
| Moisture | Storage stability, shrink risk | ≤14.5% for safe storage |
| Test weight | Milling yield, price basis | ≈72–82 kg/hl across grades |
| Delivery terminal & month | Basis differential vs. benchmark futures price | Varies by corridor |
Swap Applications
Grade-A wheat held at Rotterdam serves a counterparty's Hamburg customer. The counterparty's Hamburg stock serves the reciprocal demand. Neither side runs a barge or coastal freight leg.
Freight & demurrage avoidedA miller needing a precise protein blend swaps against a counterparty's off-target lot, with lab-verified protein content feeding straight into the escrow release conditions.
Blend penalty avoidedA buyer facing a pre-harvest supply gap draws on a counterparty's current stock now. It repays from the next harvest. That avoids a spot premium during the seasonal squeeze.
Seasonal spot premium avoidedCompliance Built In
Cross-border grain movement carries its own layer of checks: phytosanitary certificates, import tariff schedules and country-of-origin labelling. They sit on top of the standard sanctions and customs screening every swap runs through.
Related
Request a walkthrough staged on a grain corridor.