AWB today decreased its 2009/10 Pool estimates for all major milling grades in its western and eastern pools by $8 - $10 a tonne, with benchmark APW grade wheat now estimated at $254 a tonne in the Eastern Pool and $249 a tonne in the Western Pool (FOB, excl GST).

AWB General Manager Commodities, Mitch Morison, said international wheat cash values and US wheat futures have declined since the last pool update.

“The continued fall in international wheat cash values and US wheat futures market, combined with a historically strong Australian dollar, has resulted in a reduction in estimated pool returns,” Mr Morison said.

“The latest USDA report indicated that global demand for wheat had dropped significantly resulting in high world wheat stock which has led to a reduction in international wheat prices.

“The direction US wheat futures and international cash values take in the coming months will be determined when the market gets a clearer picture of the prospects of the northern hemisphere winter wheat crop.

“AWB’s current estimated pool returns remain above the current domestic cash price which has fallen substantially in recent weeks,” Mr Morison said.

With harvest completed AWB has decided to close it pools in Queensland and New South Wales.

AWB’s other pools can close at any time without notice.

Growers can secure access to AWB’s pools by contracting into them. This can be done through a local AWB Grain Marketer, or through AWB’s Grower Services Centre.

Media Inquiries:  Peter McBride, 03 9209 2174 or 0417 662 451

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