AWB (International) Limited has left all pool estimates unchanged this week, despite a volatile week in world wheat markets.
The National Pool estimate for 2001/02 APW remains at $247 per tonne (FOB, GST exclusive), and the APH estimate at $282.50/t.
AWB (International) Limited General Manager Sarah Scales said US wheat futures had traded lower during most of last week before rallying on Friday, but basis levels remained at historically high levels.
“It was something of a volatile week in futures markets as funds at first liquidated, and then re-added part of their significant long positions,” said Ms Scales.
“However, amongst it all we continue to see world wheat basis levels remain at extremely high levels, and this is certainly something AWB is taking advantage of from a sales perspective.”
Good news for the wheat market in the longer term emerged last week out of the World Trade Organisation negotiations, where China’s accession to the WTO was announced.
Ms Scales said part of China’s obligations as a WTO member was to be more open to international trade, and as a result, it could re-emerge as a potentially large source of demand for exporting nations.
“China is a real key to market direction, and its acceptance into WTO should be supportive of wheat prices in the future,” Ms Scales said
AWB (International) Limited also announced today that the 2000/01 pools in Victoria have been closed.
The next update will be Monday 26 November, 2001, at 3.00pm.