AWB National Pool estimates have increased further with significant increases in new season estimates reflecting a sensitive and volatile world wheat market.
General Manager AWB National Pool Sarah Scales said 2002/03 Estimated Pool Returns (EPR’s) had been increased between $15 - $22 per tonne, with APW estimates now at $297 per tonne (FOB, GST exclusive) and ASWN at $328/t.
EPR’s for 2001/02 increased with APW up $3/t to $254/t, and ASWN up $8 to $282/t.
Ms Scales said fundamental drivers for the market remained the current production concerns in key exporters, particularly with some harvest and quality concerns in some North American crops.
"The US futures market has been a roller-coaster ride during recent weeks as it remains highly sensitive to crop fortunes around the globe, which continues to present challenges for pricing and hedging decisions," Ms Scales said.
AWB this week announced a number of pricing initiatives for ASWN growers, following feedback and discussions at the WA Noodle wheat forum earlier this month.
"Growers told us they want AWB Golden Rewards active payment scales to be less dramatic for the ASWN pay grade, and we have modified the protein curve accordingly," Ms Scales said.
"The outcome represents a balance between sending clear market signals of a preference for 10 – 10.5% protein ASWN, and the equity for loads delivered into the ASWN pay grade between 9.2% and 11.8% protein," Ms Scales said.
AWB will offer a special low protein varietal pay grade for ASWN varieties with less than 9.2% protein, called ASWS, which will return a $5/t premium above ASW. ASWS will be quoted at a base rate of 9% protein, 5% screening and 12.5% moisture.
"As part of our ongoing efforts to expand our noodle markets, we are trialing a lower protein noodle wheat product to some new customers, and have opened this pay grade to capture that type of wheat," Ms Scales said.
A 2002/03 AUH pay grade has been established for hard wheat with high screenings, which is currently estimated at $307/t, based on 11.5% protein.
The next AWB National Pool update will be released at 5pm, Monday, October 14th.