With the international wheat market coming off its recent highs, AWB (International) Limited has revised down its new crop pool today, with estimates for a number of grades easing by $2 per tonne. The new 2001/02 National Pool estimate for benchmark APW is now $247/t (fob, GST exclusive), down $2/t, while APH was reduced by $1/t to $282.50/t (fob, GST exclusive). There was no change for new season durum forecasts.
Estimates for the 2000/01 National Pool also remain unchanged.
AWB (International) General Manager Sarah Scales said the recent rally in US wheat prices had made US grain uncompetitive compared to grain from other origins, and some decline in price was to be expected.
“The correction we’ve seen during the past fortnight has brought the US export prices back into line with other countries around the world,” said Ms Scales.
“That should give the market underlying support going forward,” said Ms Scales.
Support should also come from concerns regarding both the quality and quantity of the Argentine wheat crop, with the USDA reducing Argentina’s production estimates by 500,000 tonnes on Friday following significant rain during the past fortnight.
Today’s pool update includes a lift in new season feed wheat prices of $5 per tonne, as a result of a likely reduction in export competition into Australia’s international feed wheat markets.
“The European Union has reduced its import duty for Eastern European wheat. This should see the EU absorb additional imports from Eastern Europe, and will mean less feed wheat for us to compete with into key Asian markets,” Ms Scales said.
Also increased were the 2001/02 protein premiums for APH.
With harvest gathering momentum across the country, AWB will now be issuing pool updates on a weekly basis.
The next update will be Monday 19 November, 2001, at 3.00pm.For more information please contact Ryan McKinlay, AWB Limited, on 03 9209 2324, or 0408 347 282.