AWB 2008/09 Estimated Pool Returns (EPR) have been increased by $30 a tonne due to a lower Australian dollar and higher US wheat futures over the past fortnight.
The EPR range for APW wheat is now $380 - $400 (FOB, GST exclusive) and the Western Australian noodle grade wheat is $385 - $405 (FOB, GST exclusive).
AWB Australia Commodity Division General Manager, Mitch Morison, said the Australian dollar has depreciated and US wheat futures have trended higher in volatile trade over the past fortnight. These factors had resulted in a significant increase of the EPRs.
“The US wheat futures have risen as the market is currently focusing on the level of demand for US wheat at present, particularly with Iran becoming a major buyer of US wheat recently, as well as recent dryness in Australia and a combination of poor soil moisture and lower planted acres in Argentina,” Mr Morison said.
“Internationally, Black Sea cash wheat prices remain the benchmark and there continues to be significant international wheat sales for Black Sea wheat.
“The quality of the EU crop remains a focus of many buyers as there has been significant rain in Germany which is affecting the quality profile of the crop.
“However, the French harvest is now complete without any major quality concerns, and harvest is getting underway in largely ideal conditions in Canada and barring excessive moisture going forward, a large crop of high quality wheat should eventuate.
“The value of the Australian dollar also remains supportive of Australian commodity prices,” 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.
* WEA disclaimer - "AWB’s ability to export wheat in bulk is dependant on being granted accreditation under the Wheat Export Accreditation Scheme."
Media Inquiries: Peter McBride on 03 9209 2174 or 0417 662 451
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