Estimated Pool Returns for both old and new season AWB National Pools have been increased today, with price estimates for Australian growers bolstered again by sustained strength in international markets.
AWB increased estimates for major milling grades for the 2002/03 National Pool by $7 - $8 per tonne, with benchmark APW up $7 to $247/t (Fob, GST Exclusive). In the past six weeks, estimates for the 2002/03 APW pay grade have increased by $27/t.
General Manager AWB National Pool Sarah Scales said AWB had been able to capture the strength in US wheat futures and reflect it through historically high National Pool estimates.
“The wheat market continues to be driven by the weather volatility in the corn and soybean markets, and the potential shrinking supplies of wheat around the world,” Ms Scales said.
“The forecasts for lower wheat production and tightening supplies, coupled with the higher prices of other commodities, should continue to provide underlying support for the wheat market in the short term.
“We have seen prices of European wheat firm recently, with signs of improved demand and support from the recent move to reduce duties on wheat exports from the EU.
“The ongoing uncertainty regarding wheat production in other global export competitors, such Argentina and Canada, will also continue to influence prices for the medium term,” Ms Scales said.
The firming market has also been captured in the 2001/02 AWB National Pool, with increases of $3/t for APH, $2.50/t for AH and a $3/t lift in estimates for Feed pay grades.
AWB has also made a number of changes to the Golden Rewards protein scales for both 2001/02 and 2002/03.