AWB today announced its 2002/03 Estimated Pool Returns (EPRs) for each National Pool pay grade.
AWB National Pool General Manager Sarah Scales said AWB had lifted its estimate for benchmark APW to $220 per tonne (FOB, GST Exclusive) - $5/t above the top end of last week’s estimated range of $205 - $215/t.
"During the past two weeks we have seen some significant rallies in US wheat futures values, primarily on the back of production concerns in the US Hard Red Winter wheat crop," Ms Scales said.
"As a result of those movements, and our active management strategies for both futures and currency, we have been able to increase the APW estimate above the previous estimated price range," Ms Scales said.
AWB’s 2002/03 estimates include APH at $244.50/t, AH at $232/t, ASW at $214/t, and ADR1 at $280/t.
Ms Scales said the 2002/03 EPR base rate estimates were generally lower than the current EPRs for 2001/02 as a result of the increasing pressure on world wheat prices, and foreign exchange movements.
"Contributing to that market pressure is the continuation of the export activity of "non-traditional" exporters, at what are considered low comparative values," Ms Scales said.
Ms Scales said premiums levels for protein in the 2002/03 pay grades were similar to those in the current 2001/02 EPRs, and reflected the relative abundance of higher protein wheat and the narrowing of protein spreads around the world.
With an ASWN EPR of $240/t, Ms Scales said WA noodle growers would receive a similar base rate premium above the benchmark grade in 2002/03, as was currently estimated the 2001/02 Pool.
"The volume of ASWN delivered to AWB National Pool will always be a key driver of the final pay grade returns, given the specific and defined nature of the noodle market," Ms Scales said.
AWB’s 2001/02 National Pool estimates remain unchanged.