AWB (International) Limited (AWBI) has reduced the 2001/02 National Pool Estimates for a number of higher protein grades, following a general decline in protein premiums in the international market.
AWBI General Manager Sarah Scales said this week’s decrease in the base rates, and Golden Rewards premiums, for APH, AUH and AH wheat grades was reflective of the narrowing international premiums for higher protein wheat.
Prime Hard (APH) estimates for 2001/02 were reduced by $4 per tonne, to $272.50 (Fob, GST exclusive), with AH down $2/t and AUH down $1/t. Benchmark APW remains unchanged at $247/t.
“What we have seen over the past few months is the continuing reduction in premiums in the international market for hard wheats above mid protein, APW style grades,” Ms Scales said.
“The international spread between mid protein, and higher protein wheat is now at its narrowest level for four years.
“This has been influenced by the remaining large stocks of US, high protein wheat, and the fact that while Canadian wheat production this year was much reduced, the protein of the crop was generally good,” Ms Scales said.
In other changes to the National Pool estimates, ASWN has been reduced $3/t to $277/t, and Feed estimates have dropped $3/t to $177/t.
“The main factor behind the movement in Feed wheat estimates has been increased competition from Indian, Chinese and Eastern European wheat, which have targeted traditional feed wheat markets such as South Korea,” Ms Scales said.
The next Pool Update will be issued on Monday 4th March 2002, at 5pm.