AWB National Pool has taken advantage of stronger international wheat prices this week, with majority of new season, 2002/03 estimates lifting by between $5 and $12 per tonne.
Estimated Pool Returns for 2002/03 APW pay grade have been increased by $10/t, to $240/t (FOB, GST exclusive), with similar increase also in APH and AH. Estimates for ASWN have increased by $12/t, to $266/t.
Today’s increase means during the past month, AWB has lifted the 2002/03 National Pool estimate for benchmark APW by $20/t.
General Manager AWB National Pool Sarah Scales said global weather conditions had remained a key driver for the grain market during that time.
“US futures have hit four year record high levels during the past fortnight, following the release of the USDA monthly report which reduced production forecasts for a number of key wheat producing regions,” Ms Scales said.
“International demand has yet to turn around, and the deteriorating crop conditions in large wheat exporters such as the US and Canada has provided the support for futures’ values,” Ms Scales said.
Ms Scales said AWB had capitalised on the upward trend in wheat values, during a period in which prices were seasonally very volatile.
“As we move through Northern Hemisphere harvest there is traditionally a high degree of volatility, and as a result we need to take a balanced view of the market in the longer term,” Ms Scales said.
“But we have seen futures jumping out of what has been a generally narrow trading range, and if that strength is sustained it will be positive for prices going forward,” Ms Scales said.
Estimates for the 2001/02 AWB National Pool have also been increased this week, with AWB lifting APH estimates by $6/t, AH by $5/t, and Feed by $5/t.
The next Pool Update will be Monday, 5 August, at 5pm.
For further information contact Ryan McKinlay on (03) 9209 2324 or 0408 347 282