| ||Pool estimates reduced in sluggish market|| ||
AWB National Pool has reduced new season Estimated Pool Returns (EPRs) this week, with most pay grades for the 2002/03 season dropping by $10 per tonne.
Today’s adjustment will bring 2002/03 APW down to $287/t (FOB, GST exclusive), APH to 327.50/t and ASWN to $318/t. The recently established pay grade AEH is now estimated at $324/t.
EPRs for all durum pay grades and feed are unchanged, while Soft (ASF1) has been reduced by $5/t.
General Manager AWB National Pool Sarah Scales said while the global wheat stock position remained tight, the price outlook was being affected by sluggish demand and the slow export pace of major wheat producers.
"Customers are looking to 'just-in-time' purchasing and waiting for the market to soften. As a result, export demand from the US is slow and this has burdened the market during the past fortnight," Ms Scales said.
Ms Scales said US wheat futures had declined in the past fortnight by the equivalent of about $20/t, largely due to poor US wheat sales.
The Australian dollar has also firmed in the past week to levels around US$0.56 for the first time in many months.
"While AWB National Pool is well hedged for currency, this firmness does have an impact for the Australian dollar returns we estimate being able to achieve," Ms Scales said.
AWB National Pool estimates for 2001/02 remained unchanged. There has been no change to Golden Reward increments for either season.
The next AWB National Pool update will be released at 4pm Monday 18th November 2002.
Estimated Pool Returns