| ||Milling wheat steady, durum down for 2001/02 Pool|| ||
National Pool estimates for milling grade wheat remain unchanged this week, however, AWB (International) Limited (AWBI) has reduced its 2001/02 durum estimates and wound back its new crop estimates for 2002/03.
While 2001/02 milling grade wheat estimates remain steady, ADR1 has been reduced by $7 per tonne to $327/t, and ADR2 and ADR3 by $4/t and $3/t respectively.
AWBI General Manager Sarah Scales said changes to durum reflected a weaker global durum market, and the fact there are limited opportunities to hedge durum prices in liquid markets.
“Without being able to hedge effectively, the Pool estimates for our durum grades tend to be more volatile than our milling wheat grades,” Ms Scales said.
“However, with the single desk system in place, and AWB’s continued development of the durum market, we are able to provide a National Pool for durum that insulates some of that volatility and offers more price consistency for durum growers,” Ms Scales said.
After issuing its highest ever opening Pool estimate last month, Ms Scales also announced that AWBI has reduced the 2002/03 estimate range by $5/t.
Price estimates for 2002/03 APW are now $225 - $235/t, and ADR1, $290 - $300/t.
“At this early stage in the Pool the estimated equity will be more volatile and reflect the early stages of price and foreign exchange hedging programs,” Ms Scales said.
AWB Pool Update April 4, 2002 - tables