AWB (International) Limited has reviewed the National Pool estimates today, increasing prices for the majority of grades in the new and old crop.
AWB (International) Limited’s General Manager, Sarah Scales, said prices across the board have benefited from AWB’s effective management of the pools foreign exchange exposure.
“The weaker Australian dollar has the effect of increasing the revenue the pool receives from US dollar denominated sales. AWB’s active management of the pool’s foreign exchange position will allow the benefit of the lower dollar to be passed back to growers.
“The effect of lower US futures markets on international prices has also been offset by strong basis levels.
Pool figures are attached.
“US futures prices were lower during the past fortnight, however we’ve seen basis levels for virtually all grades strengthen further,” said Ms Scales
“The strong basis prices are despite the continued slow pace of the US commercial export sales program, and reflect a lack of selling by US farmers and a large US wheat donation program.
“The exception has been export feed prices, which reflect competition from large feed wheat supplies and lower corn prices into key destinations for Australian feedwheat,” Ms Scales said.
Changes have been made to all grades in the new crop pool, with all grades increasing by between $10 and $14, except Feed which fell by $5. Most grades in the old crop gained $4 or $5 in the update, with only Feed, FED2 and AUN remaining unchanged.
Old crop Golden Rewards protein scales for APH and APW have been increased by either 10 or 20 cents for protein between 11 and 14 per cent.
AWB (International) Limited’s pool estimates are released fortnightly. The next update will be released on Monday 15th October 2001 at 5pm EST.