Wheat growers who delivered against AWB Limited’s 2000/2001 Basis Pool contract will receive a US66 cents per bushel basis for the second tranche of the contract.
The second tranche result puts the average premium achieved by AWB’s National Pool over Chicago Board of Trade wheat futures at US 55 cents per bushel for the 2000/2001 marketing year. Using current exchange rates, that premium converts to $A38 per tonne.
AWB Limited General Manager AWB (International) Limited Sarah Scales said the Basis Pool result demonstrated the value and performance of AWB’s National Pool and the Single Desk for wheat exports.
“The Basis Pool makes our export wheat pricing performance transparent, and the Basis expressed through the Basis Pool contract underlines the high standards we set in marketing the Australian wheat crop,” Ms Scales said.
“Growers who want to take on more of the responsibility of marketing their grain have been able to do so with the Basis Pool. They can separate the timing of wheat futures and foreign exchange hedging decisions to capture more value for the wheat they contract.”
Growers who delivered against 2000/2001 Basis Pool contracts will be paid $66.80 per tonne (FOB) GST exclusive on July 10. This payment is calculated from the AWB basis and the settlement value of the July 2001 CBOT wheat contract as of June 28 2001, converted to Australian dollars at the AUD/USD hedge settlement rate from June 28 of 0.5173.
To work out their net return from each Basis Pool tranche growers should calculate the results of their currency and wheat futures transactions for the period, and deduct their costs.
The final tranche of the 2000/2001 basis pool will be finalised in December. The 2001/2002 Basis Pool contract is now open. Growers who would like to get involved with Basis Pool, or find out more about it, should contact their local AWB Area Office.
AWB riskassist provides growers with an all encompassing service which includes wheat futures and currency transactions to support Basis Pool, financing of hedge positions and balanced advice on hedging with futures.
For more information please contact Paul Ryan on 03 9209 2098 or 0408 347 282