Wheat growers using AWB Basis Pool are poised to achieve good returns this season, following the announcement of the third and final tranche result for the 2001/02 Basis Pool.
AWB Limited Group General Manager Trading Peter Geary said AWB had delivered a basis of 55c/bu US cents per bushel for the third tranche of the Basis Pool contract. The result puts the final weighted average basis for the life of the Pool at 42.13c/bu.
"The basis represents the average premium achieved by AWB for its international wheat sales above Chicago wheat futures, and the final average of 42.13 cents is an excellent result given what has been a tough international market environment," Mr Geary said.
AWB will be making a third tranche payment to growers of $43.14 per tonne for benchmark APW wheat (10% protein, 5% screenings), taking total payments for APW to $232.64/t.
"For growers to determine their own AWB Basis Pool returns so far, they should include their individual wheat futures and currency hedging results," Mr Geary said.
"However, some growers using AWB Basis Pool Plus are now set to receive in excess of $260/t (FOB, GST exclusive) for APW wheat, having successfully managed their own price risk since April last year by using AWB Basis Pool plus riskassist," Mr Geary said.
AWB’s third tranche payment is calculated using a December Chicago Board of Trade futures settlement rate of 380.5 cents per bushel, and an AUD/USD currency hedge settlement rate of 0.5564 cents.
AWB Basis Pool gives growers the opportunity to access the benefits of the active management of 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 2003/04 Basis Pool contracts are now open, and growers wanting to generate their own returns through AWB Basis Pool should contact their local AWB area office.