Growers using AWB Basis Pool last season are poised to earn up to $270 per tonne for APW wheat, following the announcement today of the first tranche result for the 2001/02 Basis Pool.
AWB Limited General Manager Trading, Peter Geary, said the basis of 41 US cents per bushel represented the average premium achieved by AWB for international wheat sales to date over Chicago wheat futures, and was equivalent to $29/t for Australian wheat growers
“Some growers using AWB’s Basis Pool plus our riskassist service are now on track for some healthy returns, up to $270 per tonne,” Mr Geary said.
“For growers to determine their Basis Pool returns so far, they should include their individual wheat futures and currency hedging results,” Mr Geary said.
The AWB Basis Pool gives growers the opportunity to access the benefits of AWB’s management of the Single Desk, and at the same choose the timing of their wheat futures and currency hedging. This means that growers are effectively generating their own pool return.
AWB riskassist provides an all-encompassing service to support the Basis Pool, including wheat futures and currency components, financing of hedge positions and balanced advice on hedging with futures.
To calculate the first tranche payment of the 2001/02 Basis Pool AWB will use the Chicago Board of Trade SRW settlement price from February 26 of US275.75 cents per bushel, and the AUD/USD Hedge Settlement rate of 51.31 cents.
The payment of A$124.76/t (FOB, GST exclusive) for APW 10 per cent protein, 5 per cent screenings, will be made next week. Growers will get 55 per cent of the grade premiums and Golden Rewards increments in their payment.
Mr Geary said the result indicated a strong performance by AWB in what were difficult market conditions.
“During the past months we have seen much higher Chicago Board of Trade wheat futures, and at the same time, world demand for wheat has been slow, capping export prices,” Mr Geary said.
The next payment tranches will occur in July and December this year.