Security of payment, pooling, harvest finance and payment flexibility will be some of the key features of AWB’s new wheat pooling options for Australian wheat growers in 2008/09.
AWB will cover the national wheat crop through two regional wheat pools, for West Australian and Eastern Australian markets. The two pools will reflect the markets for wheat from those regions, allowing participants to capture value unique to their location.
Importantly, AWB’s wheat pools will continue to offer unrivalled security including a trust structure minimising exposure to pooled assets, and a range of proven, industry leading pool payment options.
AWB General Manager Australian Commodities Mitch Morison said the company intended to apply for export accreditation under the new wheat marketing regime and had many loyal international customers who wanted to continue to buy wheat from Australian farmers through AWB’s Wheat Pools.
“Growers have expressed a clear preference to continue marketing their wheat through pools. They have also told us that they want to retain the best features of the AWB National Pool and apply that in a way which will suit the new wheat marketing arrangements,” Mr Morison said.
“Our Western and Eastern Wheat Pools, combined with our cash and derivative marketing options, will give growers a competitive range of wheat marketing choices when they deliver to AWB.”
Mr Morison said AWB will continue to offer Harvest Finance Products and forward contracting opportunities to growers who want to manage their price risk prior to and during harvest. This includes the option of contracting into AWB’s Wheat Pools for a premium, as well as Multigrade and Fixed Grade cash contracts, Cash at Silo and the RiskAssist Fixed Basis and Flexi 3 contracts.
Growers who contract into AWB’s wheat pools will receive a $10 per tonne Early Commitment Premium. This option will be available from mid August.
AWB will be able to offer growers quality based payments on all of the company’s wheat acquisition options.
Mr Morison said the competitive wheat market will offer growers more opportunities but at the same time introduces new risks into wheat marketing.
“Growers will be looking to do business with people they can trust, who are up front and easy to understand with their costs, and who have a track record of performance in the wheat market,” he said.
“Our industry-leading Grain Marketing team is available to help growers with their marketing decisions this season.
“We want our experience and capability, combined with our competitive range of wheat marketing options to put us at the top of growers’ lists when they are looking to market their wheat this harvest.”
Mr Morison said full details of AWB’s Wheat Pool Harvest Finance options would be launched prior to harvest.
The EPR range for APW wheat for both pools is currently $370 - $390 (FOB, GST exclusive) and the Western Australian noodle grade wheat is $375 - $395 (FOB, GST exclusive).
Media Inquiries: Peter McBride on 03 9209 2174 or 0417 662 451
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