AWB’s estimates of wheat pool returns for the 2010/11 season are holding steady, with benchmark grade APW wheat forecast at $260 a tonne and ANW1 noodle wheat at $270 a tonne in the Western Pool and APW wheat at $254 a tonne in the Eastern Pool (FOB, excl GST).

AWB General Manager Commodities, Mitch Morison, said the Australian dollar remains volatile and is trending downwards, which in itself this is great news for the Australian farmer, however US-dollar wheat futures are also in decline with the nearby July contract pulling back almost US$10 since AWB’s previous last pool update.

“The US dollar has strengthened on world currency markets, while the fundamental world supply and demand picture for wheat is still one of ample supply from previous seasons,” Mr Morison said.

“The next big northern hemisphere crop is well developed; indeed harvest is already underway of early crops in southern US states.

“The challenge for the wheat market is to absorb new season wheat while still having large quantities in store, so wheat futures have declined significantly.

“The net result from an Australian perspective is we are holding our pool forecast steady,” Mr Morison said.

AWB media contact: Ian Desborough 03 9209 2335 or 0418 853 881

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