Wheat grower support for AWB’s $15 a tonne early commitment premium pool contracts has been so strong that available tonnage has been fully contracted and the offer has now closed, a week ahead of schedule.

AWB had planned to have the contracts available until 4 September, however growers of noodle wheat reached AWB’s tonnage limits in just two days and milling wheat growers have taken up the rest of the contracts in less than two weeks.

AWB General Manager Commodities, Mitch Morison, said the enormous interest in the contracts was both a vote of confidence from growers in their crops and a vote of confidence in AWB’s pool performance.

“The interest in these contracts has been greatest from Western and South Australia, which is what we would expect,” Mr Morison said.

“Growers have sought to lock in premiums and they are obviously pleased with our pool performance.

“Many of the growers who have signed up are customers who used our contracts in previous years, although plenty are new to the system.

“Common feedback has been that growers appreciate the opportunity these contracts present, they are attracted to the payment confidence of AWB’s pool trust structure and our overall pool performance, and they see our pool as a valuable part of their marketing program.

“It’s been very pleasing to see such a rapid response to our contract offer, which our research with growers had shown us was likely.

“Such strong take up benefits our marketing and hedging program, which in turn benefits the pool participants – that’s why we promote these contracts so enthusiastically.

“For wheat growers who missed out this time, we are offering another contract from 14 September with a $10 a tonne premium, which gives growers a later delivery window and wider delivery tolerances, so there will be another opportunity,” Mr Morison said.

AWB encourages growers to check the AWB website and familiarise themselves with the terms and conditions for its 2009/10 season wheat pools, before entering into wheat supply contracts.

* WEA disclaimer - "AWB’s ability to export wheat in bulk is dependant on being granted reaccreditation under the Wheat Export Accreditation Scheme."

AWB media contact: Ian Desborough 03 9209 2335 or 0418 853 881
AWB LIMITED ABN 83 104 207 847    380 La Trobe Street, Melbourne, Vic 3000 Australia

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