Despite a volatile week on international wheat markets, AWB (International) Limited (AWBI) has kept National Pool estimates unchanged in its latest revision.
AWBI’s benchmark APW remains at $250/t (FOB, GST exclusive), ADR1 at $331/t and APH at $285.50/t.
AWBI general manager Sarah Scales said US wheat futures were sharply lower across the week, but did rebound on Friday following corn sales to China, and reports of more US wheat sales to the European Union.
Ms Scales said the market had followed a similar pattern to that set in recent months, where US wheat gained support at values where it was competitive to other origins.
“Last week’s lows should offer good support for prices going forward, but we will need to see an increase in demand to get those prices back near their recent highs,” Ms Scales said.
AWBI announced on Friday it was establishing a limited trial for High Moisture Wheat (HMW), to test its marketing possibilities.
The HMW segregation will be for wheat delivered against ASW receival standards, but will allow for moisture of up to 13.5%, measured using Near-Infra Red, Infratech technology.
HMW is quoted at $224/t, with Golden Rewards protein and screenings increments to apply.
“AWB recognises there is an issue in some areas of the country with moisture, and this limited trial is part of an ongoing effort by AWB to seek some flexibility for growers with high moisture levels,” Ms Scales said
In response to recent rain in northern New South Wales, AWBI has also opened a new durum segregation to catch wheat that does not meet existing durum specifications.
Known as ADR4, the grade will trade at flat rate, currently estimated at $210/t, which represents a $56/t discount to ADR3.
The segregation will accept durum varieties on feed wheat standards, with a maximum of 15% screenings and no Golden Rewards discounts or premiums for protein or screenings.
“We are not anticipating huge tonnages of wheat into this new segregation, but AWB has had some success in the past in marketing weather affected durum grain, and hope to offer growers affected by the recent rains a marketing avenue for such grain,” Ms Scales said.
Segregations for ADR4 will be introduced at Curlewis, Edgeroi, Emerald Hill, Spring Ridge and Westdale.
The next National Pool update will be Monday 10 December, 2001, at 3.00pm.
For more information please contact Ryan McKinlay, AWB Limited, on 03 9209 2324, or 0408 347 282.