| ||Strong basis reflects Australian wheat premiums|| ||
PREMIUMS earned for Australian growers through AWB Limited’s management of the single desk for Australian wheat have been demonstrated in the first tranche result of the 2000/2001 Basis Pool.
The basis of 46 US cents per bushel represents an $A32 per tonne price premium over US Soft Red Winter Wheat. The basis is the average premium achieved by AWB for pool wheat sales to date over Chicago wheat futures.
AWB will use the Chicago Board of Trade SRW settlement price from February 26 of US259 cents per bushel, and the AUD/USD Hedge Settlement rate from February 27 of 52.20 cents to calculate the first tranche Basis Pool payment.
The payment of A$118.08 (FOB, excluding GST) per tonne for APW 10 per cent protein/5 per cent screenings wheat will be made next week. Growers will get 55 per cent of the grade premiums and Golden Rewards increments in their payment.
AWB (International) Limited General Manager Peter Geary said this result was especially pleasing given that under Golden Rewards a larger proportion of the basis was paid to growers via protein and screenings payments.
“When you consider the extra payments to growers from the revised protein and screenings scales this is a very strong first tranche result, and that basis result is also reflected in our current National Pool return estimates,” Mr Geary said.
The AWB Basis Pool gives growers the opportunity to access the benefits of AWB’s management of the Single Desk, and at the same choose the timing of their wheat futures and currency hedging. This means that growers are effectively making their own pricing decisions,” Mr Geary said.
“To determine their Basis Pool return so far, growers should include their individual wheat futures and currency hedging results,” Mr Geary said
The next payment tranches will occur in July and December this year.
For more information please contact Paul Ryan on 03 9209 2098 or 0408 347 282