AWB’s 2009/10 estimated pool returns (EPRs) for wheat have been revised downward, due to continuing weakness in the world wheat market.
Benchmark APW grade wheat in the western pool has been reduced by $4 a tonne to a new EPR of $242 a tonne, while the eastern pool is down $6 a tonne to a new EPR of $240 a tonne (FOB, excl GST).
AWB General Manager Commodities, Mitch Morison, said the world market had declined around $14 a tonne over the past fortnight, however the combination of AWB’s hedging program and physical sales profile meant AWB’s pool revisions were considerably less.
“With large wheat stocks around the world and recent softening in wheat prices, many buyers are standing aside waiting for the market to consolidate before committing to new purchases,” Mr Morison said.
“Despite the reduced international liquidity AWB is continuing to make sales internationally, our most notable last week to Korea, along with sales to domestic customers as well.
“Its worth noting that AWB’s pool strategy involves pricing the pool over time, as this allows our pool to participate in global market cycles.
“These cycles are especially relevant as the northern hemisphere crop comes out of dormancy and is exposed to heightened production risk, in turn exasperated by the structural position in wheat of US-based trading funds.
“Any hint of a global crop production issues could result in a significant short covering rally causing prices to spike. The probability of such an event is low, however our pool has capacity to take advantage of higher global prices if any spikes materialise.
“At a local level the export trade from eastern Australia has continued to struggle against earlier trade commitments from Western Australia, with sellers from eastern ports having to reduce prices to attract business, hence our eastern pool is showing a greater decline. It’s the market doing the work to balance demand for wheat from all export ports,” Mr Morison said.
Media Inquiries: Ian Desborough 03 9209 2335 or 0418 853 881
|
EASTERN POOL - Estimated Pool Return 2009/10 AWB Pool ($/t FOB, excluding GST) |
|
Pool Pay Grade Base Rate |
Estimated Pool Return |
Change |
|
APH1 (14% protein) |
$265 |
Down $6 |
|
APH2 (13% protein) |
$260 |
Down $6 |
|
AH14 (14% protein) |
$260 |
Down $6 |
|
AH1 (13% protein) |
$257 |
Down $6 |
|
AH2 (11.5% protein) |
$251 |
Down $6 |
|
H2G (11.5% protein) |
$251 |
Down $6 |
|
AUH2 (Flat protein) |
$236 |
Down $6 |
|
APW1 (10.5% protein) |
$240 |
Down $6 |
|
ASW1 (Flat protein) |
$225 |
Down $6 |
|
SFE1 (Flat protein) |
$260 |
Down $6 |
|
SFE2 (Flat protein) |
$250 |
Down $6 |
|
AGP1 (Flat protein) |
$225 |
Down $6 |
|
HPS1 (Flat protein) |
$220 |
Down $6 |
|
FED1 (Flat protein) |
$200 |
Down $6 |
|
AUW1 (Flat protein) |
$200 |
Down $6 |
|
SFW1 (Flat protein) |
$220 |
Down $6 |
|
GPSF (Flat protein) |
$200 |
Down $6 |
|
AH9 (Flat protein) |
$220 |
Down $6 |
|
DR1 (Flat protein) |
$255 |
Down $6 |
|
DR2 (Flat protein) |
$245 |
Down $6 |
|
DR3 (Flat protein) |
$235 |
Down $6 |
|
|
|
|
|
WESTERN POOL - Estimated Pool Return 2009/10 AWB Pool ($/t FOB, excluding GST) |
|
Pool Pay Grade Base Rate |
Estimated Pool Return |
Change |
|
AH1 (13% protein) |
$265 |
Down $4 |
|
AH2 (11.5% protein) |
$260 |
Down $4 |
|
BR1 (12% protein) |
$263 |
Down $4 |
|
ER1 (12% protein) |
$263 |
Down $4 |
|
AUH2 (Flat protein) |
$236 |
Down $4 |
|
APW2 (10% protein) |
$242 |
Down $4 |
|
ANW1 (Flat protein) |
$237 |
Down $4 |
|
ANW2 (Flat protein) |
$227 |
Down $4 |
|
APWT (10% protein) |
$242 |
Down $4 |
|
ASW1 (Flat protein) |
$232 |
Down $4 |
|
AGP1 (Flat protein) |
$227 |
Down $4 |
|
AUW1 (Flat protein) |
$192 |
Down $4 |
|
SFT1 (Flat protein) |
$267 |
Down $4 |
|
SFT3 (Flat protein) |
$247 |
Down $4 |
|
FED1 (Flat protein) |
$192 |
Down $4 |
|
DR1 (Flat protein) |
$256 |
Down $4 |
|
DR2 (Flat protein) |
$236 |
Down $4 |
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