AWB has reduced its 2008/09 Estimated Pool Return (EPR) range by $10 a tonne due to softening international wheat cash prices and US wheat futures over recent weeks.
The EPR range for APW wheat is now $340 - $360 (FOB, GST exclusive) and the Western Australian noodle grade wheat is now at $345 - $365 (FOB, GST exclusive).
AWB Australia Commodity Division General Manager, Mitch Morison, said international wheat prices and futures have fallen over the past few weeks as a number of factors played out in the international grains market.
“Northern hemisphere winter wheat crops in the major exporting nations are generally in very good to excellent condition, especially in the European Union, Russia and Ukraine, with the potential for yield forecasts to rise,” Mr Morison said.
“Winter wheat crops are in good condition in the United States, with potential for improved tonnage going forward.
“Spring wheat crops in the US and Canada are nearing 100% planted into a less than optimal soil moisture profile although plenty of time remains for good crops to eventuate.
“However the market is keeping a close eye on moisture conditions in Australia and potential import demand from Pakistan and Middle Eastern countries, where local production this season has been poor.
“Apart from wheat supply and demand, the continued rise of the Australian dollar to its 24-year high is having a negative effect on commodity prices domestically,” he said.
Growers are again reminded that the 2008/09 EPR is currently not supported by a hedging program and will continue to fluctuate by price movements in international wheat markets.
AWB will continue to provide regular updates on the 2008/09 season pool estimate going forward.
Media Inquiries: Peter McBride on 03 9209 2174 or 0417 662 451
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