AWB’s National Pool has cushioned the impact of a volatile world wheat market on estimated returns for growers, with relatively minor adjustments to Pool estimates in the face of a significant drop in world prices.
AWB General Manager National Pool Sarah Scales said the wheat market was currently fraught with uncertainty, and had been under considerable pressure during the past weeks due to a notable lack of world demand.
“In the past week alone the wheat market has effectively dropped by about $15 per tonne, during which time we have also seen the Australian dollar strengthen,” Ms Scales said.
“This week’s pool revision reflects that market trend, but due to our futures and currency management, and our sales and shipping programs, we have been able to insulate the 2001/02 Pool from the full market decline.
“With regard to the new season pool, 2002/03, where we have had only a limited opportunity to hedge, these sort of market movements will be more pronounced through the Pool estimates,” Ms Scales said.
Ms Scales said 2001/02 estimates for major milling grades had been reduced by $4/t, taking APH to $261/t (fob, GST exclusive) and APW to $239/t.
AWB has reduced 2001/02 estimates for ASWN by $6/t, following a high production season for noodle wheat which has created a surplus of supply.
National Pool estimates for 2002/03 have also been reduced, with the APW range now $210 - $220/t, and ADR1 $285 - $295/t.
The next Pool Update will be Monday, 13th May, at 5pm.