AWB National Pool announced today that it would be extending the “life” of the 2001/02 National Pool, and introducing a sixth distribution from that Pool in June 2003 as part of an effort to maximise value for growers.
General Manager AWB National Pool Sarah Scales said the move would ultimately allow higher returns to be captured and passed back to growers who delivered to the 2001/02 AWB National Pool.
“We have been managing our second largest ever wheat crop, in a highly volatile market that has seen US wheat futures fluctuate wildly in a range of about US$65 per tonne, and international demand shift towards heavily discounted, non traditional wheat origins such as eastern Europe and India,” Ms Scales said.
“We have deliberately modified our international marketing program as part of our active pool management. We have not been prepared to sell at discount prices to compete with some of the cheaper origin wheat, but rather have carried stock forward so we can achieve the best possible price for that grain by selling into a much stronger wheat market.
“This approach does incur additional carry costs, but these are far outweighed by the added value generated through our sales and position management programs,” Ms Scales said.
The previous two AWB National Pools have been finalised with a final fifth distribution made in April 2001 (for the 1999/2000 National Pool) and April 2002 (for the 2000/2001 National Pool)
For the 2001/02 AWB National Pool there will be a fourth distribution in January 2003, a fifth in April 2003 as usual, along with a final sixth distribution in June 2003.
“When the pool is finalised in June, ultimate returns will be higher than they would have been if AWB National Pool had not taken this strategic approach, and had moved more stock during 2002 at lower values,” Ms Scales said.
For more information please contact Ryan McKinlay on (03) 9209 2324 or 0408 347 282.