National Pool estimates for milling grade wheat were reduced across the board today however, AWB (International) Limited (AWBI) has left all feed, soft and durum wheat estimates unchanged for the 2001/02 National Pool.
The 2001/02 National Pool estimate for APH is now $265/t (fob, GST exclusive), down $4/t, APW is now $243/t, down $4/t and ASW is now $237/t, down $4/t. Noodle wheat was also reduced by $6/t leaving the estimate at $266/t.
AWBI General Manager, Sarah Scales, said changes to milling and noodle grades reflected the tightening of international wheat prices over the past fortnight, with major US grades generally down between US$5 – US$8 lower.
“Despite a near record crop and a very slow international export environment, AWB has been able to price and hedge a significant percentage of the export crop and this has ensured limited downside for growers who deliver to the National Pool,” said Ms Scales.
“The weak export market is reflected by the fact that US export sales look like being the second lowest in 16 years,” said Ms Scales.
AWBI has also wound back its new crop estimates for 2002/03.
AWBI has reduced the 2002/03 estimate range for APW by $5/t to $220 - $230/t (fob, GST exclusive) however the 2002/03 Durum estimate range remains unchanged at $290 - $300/t.
“At this early stage in the Pool the estimated equity is more volatile subject to longer term market conditions and this reduction reflects the early stages of price and foreign exchange hedging programs,” Ms Scales said.
Wheat growers who delivered to the 2000/2001 National Pool would have received their final distribution by now and this represents the closure of the 2000/01 National Pool.
For benchmark APW, the final base distribution will be $46.57 per tonne (fob, GST exclusive), taking the final equity to $234.31/t.
“These returns for the 2000/01 National Pool are among the highest AWB has achieved on behalf of wheat growers who deliver to the National Pool, and are the result of another successful sales and marketing program,” Ms Scales said.