A strong outlook for protein premiums were the key feature of the 2001/2002 National Pool varietal grade spread estimates announced today by AWB Limited.
Both the Prime Hard and AH varietal pools are expected to deliver bigger premiums this season compared to last year.
Golden Rewards protein premiums for high protein wheat, and discounts for lower protein, reflect a market which is being driven by the tighter supply outlook for hard wheat relative to soft wheat.
The benchmark APW grade return is estimated at $253 per tonne (FOB, GST inclusive), at the lower end of the range forecast in the last pool estimate update.
AWB (International) Limited General Manager Sarah Scales said the National Pool expected to capture the full benefit of the strong protein market for Australian growers.
“The message for growers planting right now is that if they can do something to boost their protein, it should result in better returns compared to previous years,” Ms Scales said.
“Through AWB’s Golden Rewards active protein and screenings scales we have the ability to fully reflect these market signals to growers, so it’s a great opportunity for growers to cash in on what is expected to be a good market for Australian wheat,” Ms Scales said.
The 2001/2002 Prime Hard Varietal Pool is estimated at $299.20/t, and the AH pool is forecast at $276.65 per tonne.
“Prices for higher protein hard wheat are really being driven from the US and Canada, where production is likely to be down significantly on last year,” Ms Scales said.
“The outlook for ASW wheat is not as favourable because of the continuing large supplies of US Soft Red Winter and white wheat. We are also expecting increased exports of similar types of wheat from India and Eastern Europe, as well as a potentially very large crop from Argentina which will come onto the market early in 2002.
“Despite the positive signs for higher protein wheat it is still very early in the season. Demand for wheat world-wide remains slow, and the inevitable supply and demand uncertainties over the next 12 months will have a significant bearing on final returns. “
Noodle wheat and Soft wheat in Western Australia were estimated to return similar premiums over APW to those of the 2000/2001 season.
The Durum market is expected to be strong. The new season forecast for DR1 is above the range forecast in last week’s pool update. DR1 is estimated at $325.60 per tonne, about $23 per tonne above the current 2000/2001 National Pool estimate.
AWB Limited also increased the Golden Rewards protein scales for protein above 11 per cent on the 2000/2001 pools for hard grain milling wheat, including APW, AH, AUH, Prime Hard and GP.
Golden Rewards matrices reflecting current pool returns will be available from AWB’s Grower Service Centre on 1800 054 433 or from AWB’s website at www.awb.com.au on Wednesday May 30.
AWB (International) Limited’s pool estimates are released fortnightly. The next update will be released on Monday 11th June 2001 at 5pm EST.