AWB has reduced its 2009/10 estimated pool returns (EPRs) for wheat following substantial falls in wheat prices over the past week. Major wheat grades have fallen $8-9 a tonne across AWB’s Western and Eastern Pools.  Noodle wheats are down just $3 a tonne, while durum wheat is down $20 a tonne.

Benchmark APW grade wheat now has an EPR of $255 a tonne in the Eastern Pool and $250 a tonne in the Western Pool (FOB, excl GST).

AWB is also receiving two new hard wheat grades in Western Australia, BR1 and ER1, which relate to the EGA Bonnie Rock and EGA Eagle Rock wheat varieties.

AWB General Manager Commodities, Mitch Morison, said that after rallying for several weeks through mid-October, by the end of October the wheat futures market had pulled back substantially.

“The market gained strength on the back of major delays in the US corn and soybean harvests caused by wet weather, and higher commodity prices generally, however that situation has now changed and the wheat market has turned back to fundamental supply and demand factors,” Mr Morison said.

“There is ample wheat available in the world to meet buyers’ needs after a very large northern hemisphere harvest and with the Australian harvest gathering pace, the supply is increasing.

“Unfortunately world demand is down this year, after many northern hemisphere countries that normally import wheat produced good crops of their own, thus reducing their import requirments.

“Durum wheat prices have been reviewed lower as larger than expected crops in North America and North Africa provide pricing pressure ahead of the Australian harvest.

“The strong Australian dollar is also a major negative to Australian wheat growers’ returns,” 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
APH2 (13% protein)	$273	Down $11
APH1 (14% protein)	$280	Down $9
AH1 (13% protein)	$270	Down $9
AH2 (11.5% protein)	$263	Down $9
AUH2 (Flat protein)	$245	Down $9
APW1 (10.5% protein)	$255	Down $9
ASW1 (Flat protein)	$248	Down $9
SFT1 (Flat protein)	$280	Down $9
AGP1 (Flat protein)	$240	Down $9
HPS1 (Flat protein)	$225	Down $9
FED1 (Flat protein)	$220	Down $9
DR1 (Flat protein)	$295	Down $20
DR2 (Flat protein)	$265	Down $20
DR3 (Flat protein)	$235	Down $20
WESTERN POOL - Estimated Pool Return 2009/10 AWB Pool ($/t FOB, excluding GST):
Pool Pay Grade Base Rate	Estimated Pool Return	Change
AH1 (13% protein)	$266	Down $8
AH2 (11.5% protein)	$259	Down $8
BR1 (12% protein)	$265	New grade
ER1 (12% protein)	$265	New grade
AUH2 (Flat protein)	$240	Down $8
APW2 (10% protein)	$250	Down $8
ANW1 (Flat protein)	$245	Down $3
ANW2 (Flat protein)	$235	Down $3
APWT (10% protein)	$250	Down $8
ASW1 (Flat protein)	$240	Down $8
AGP1 (Flat protein)	$235	Down $8
AUW1 (Flat protein)	$210	Down $8
SFT1 (Flat protein)	$275	Down $8
FED1 (Flat protein)	$210	Down $8

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