Wheat growers using AWB Basis Pool last season could be on track to receive between $260 and $270 per tonne (FOB, GST exclusive) for APW wheat this year, following the announcement of second tranche results for the 2001/02 Basis Pool.
AWB Limited Group General Manager Trading Peter Geary said AWB had delivered a basis of 37.75 US cents per bushel for the second tranche of the Basis Pool contract.
"The basis represents the average premium achieved by AWB for its international wheat sales above Chicago wheat futures," Mr Geary said.
"AWB’s weighted average basis to date is 39.5 cents per bushel, which is a strong result given what has been a tough international market environment," Mr Geary said.
AWB will be making a second tranche payment to growers of $64.74 per tonne for benchmark APW wheat (10% protein, 5% screenings, 12.5% moisture).
"This means some growers using AWB Basis Pool, plus our risk assist service, remain poised to achieve returns of up to $270/t this season," Mr Geary said.
"For growers to determine their own AWB Basis Pool returns so far, they should include their individual wheat futures and currency hedging results."
AWB second tranche payment is calculated using a June 26 Chicago Board of Trade futures settlement rate of 293 cents per bushel, and an AUD/USD currency hedge settlement rate of 56.33 cents.
The final tranche for the 2001/02 Basis Pool will be announced in December.
AWB Basis Pool gives growers the opportunity to access the benefits of the active management AWB National Pool and the Single Desk system, and at the same time choose the timing of their wheat futures and currency hedging.
AWB riskassist provides growers an all-encompassing service which complements the AWB Basis Pool, including wheat futures and currency management, financing of hedge positions and balanced advice on hedging with futures.
The 2002/03 Basis Pool is now open, and growers wanting to generate their own returns through AWB Basis Pool should contact their local AWB area office.