AWB (International) Limited (AWBI) today announced a number of reductions to its 2001/02 National Pool estimates. The 2000/01 National Pool remains unchanged.
AWBI General Manager Sarah Scales said adjustments had been made to the estimates for high protein grades, as well as ASW, Feed, Soft, Noodle and ADR1, amid a quiet export market.
“Competitor export prices for most grades of wheat have weakened over the last fortnight as a result of lower futures and cash markets,” said Ms Scales.
“Hard Red Winter wheat out of the Pacific North West, which is a key indicator for Australia’s Asian customers, was US$3 lower and US Soft White wheat is down approximately US$6 a tonne over the past fortnight.
“We are now entering a period of volatility in the wheat market as Northern Hemisphere crops emerge from dormancy.
“AWB expects continued volatility in prices over the coming weeks as Northern Hemisphere crops develop and the demand picture becomes clearer.
“US weather continues to occupy the minds of traders however it is too early to estimate winter wheat yields and rains in late April and early May may assist a good crop coming out of the US,” said Ms Scales.
Prime Hard has been reduced by $2 to $269/t (FOB, GST exclusive), Australian Hard by $2/t to $256/t, ASW down $2/t to $241/t, Feed is down $2/t to $172/t, Soft down $2/t to $261.50/t, Noodle down $5/t to $272/t, while ADR1 is down $7 to $334/t, with reductions also to protein premiums. There have been no changes to benchmark APW, which remains at $247/t.
Ms Scales said this week’s decrease in the base rates, and Golden Rewards premiums, for APH and AH reflected the continuing narrowing of international premiums for higher protein wheat.
“Feed wheat prices have continued to fall due to increased wheat exports from India and China, as well as competition from Chinese corn, while the reduction for ADR1 reflects the steady easing of world durum markets.
The next Pool Update will be issued on Tuesday 2nd April 2002, at 5pm.