AWB today increased its Estimated Pool Returns (EPRs) for the Prime Hard and Hard wheat grades, while reducing its Durum estimates for the 2008/09 season.
Other grades remain unchanged, leaving the benchmark APW Grade for the AWB Eastern Pool at $326/t FOB and the Western Pool at $323/t FOB.
AWB General Manager of Australian Commodities Stuart Richardson said AWB’s Pool Management team had made a solid start to the new marketing season, thanks to the strong support shown by growers to AWB’s $10/t early commitment bonus.
“The significant tonnage we’ve signed up has allowed us to begin a hedge program and to add to our physical sales to customers for early shipment this harvest, and this is supporting our current estimates” Mr Richardson said.
Mr Richardson said global grain markets had stabilised in the last two weeks, partly in alignment with broader financial markets, but also in line with supply and demand fundamentals which were becoming clearer as Australia and Argentina moved into harvest.
“Wheat futures have finally found some support in the past fortnight, recovering from recent lows. Whilst the global picture has not really changed, the massive re-adjustment in wheat values which has occurred over the past six months appears to be slowing down,” Mr Richardson said.
Global cash prices remain under pressure as large European and Black sea supplies continue to compete for sales, and sales of new crop Australian wheat have also added to supplies coming on to the market.
The adjustments in this week’s pool returns reflect a slight improvement in the spreads between high protein hard wheats and lower quality wheat which appears to be in ample supply globally. The durum market is being affected by a larger European crop, which is reducing Europe’s import requirement, and the large Canadian harvest which includes increased durum supplies.
AWB has also introduced an APWT pay grade in the AWB Western Pool to secure supplies of this specialty wheat used in some noodle making applications.
Media Inquiries: Paul Ryan on 08 9318 8290 or 0429 856 883
EASTERN POOL - Estimated Pool Return 2008/09 AWB Pool ($/t FOB, GST exclusive):
|
Pool Pay Grade Base Rate
|
Estimated Pool Return |
Change |
|
APH2 (13% protein) |
$344 |
Up $3 |
|
AH1 (13% protein) |
$340 |
Up $2 |
|
AH2 (11.5% protein) |
$334 |
Up $2 |
|
AUH2 (Flat protein) |
$322 |
Unchanged |
|
APW1 (10.5% protein) |
$326 |
Unchanged |
|
ASW1 (Flat protein) |
$311 |
Unchanged |
|
AGP1 (Flat protein) |
$301 |
Unchanged |
|
AUW1 (Flat protein) |
$276 |
Unchanged |
|
HPS1 (Flat protein) |
$301 |
Unchanged |
|
FED1 (Flat protein) |
$251 |
Unchanged |
|
DR1 (Flat protein) |
$425 |
Down $15 |
|
DR2 (Flat protein) |
$395 |
Down $15 |
|
DR3 (Flat protein) |
$365 |
Down $15 |
WESTERN POOL - Estimated Pool Return 2008/09 AWB Pool ($/t FOB, GST exclusive):
|
Pool Pay Grade Base Rate
|
Estimated Pool Return |
Change |
|
AH1 (13% protein) |
$337 |
Up $2 |
|
AH2 (11.5% protein) |
$331 |
Up $2 |
|
AUH2 (Flat protein) |
$319 |
Unchanged |
|
APW2 (10% protein) |
$323 |
Unchanged |
|
ANW1 (Flat protein) |
$323 |
Unchanged |
|
ANW2 (Flat protein) |
$303 |
Unchanged |
|
APWT (10% protein) |
$323 |
New |
|
ASW1 (Flat protein) |
$308 |
Unchanged |
|
AGP1 (Flat protein) |
$298 |
Unchanged |
|
AUW1 (Flat protein) |
$273 |
Unchanged |
|
SFT1 (Flat protein) |
$328 |
Unchanged |
|
FED1 (Flat protein) |
$248 |
Unchanged |
|
DR1 (Flat protein) |
$425 |
Down $15 |
|
DR2 (Flat protein) |
$395 |
Down $15 |
|
DR3 (Flat protein) |
$365 |
Down $15 |
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