AWB today announced its second tranche payment for the 2002 AWB Basis Pool, delivering growers a sound result in what remains a competitive and volatile international wheat market.
AWB Limited Group General Manager Trading, Peter Geary, said AWB had achieved a basis of 27 US cents per bushel for the second tranche of the 2002 contract - producing a weighted average basis to date of 22.6 US cents per bushel.
AWB will be making a second tranche payment to growers of $53.88 per tonne for benchmark APW wheat (10% protein, 5% screenings, 12.5% moisture).
Mr Geary said while the tranche results appeared lower than in previous seasons, growers are in fact receiving similar basis returns to past years when quality increments are taken into account.
"A significant proportion of the overall basis this year has or will be paid to growers in Golden Rewards quality payments, which includes moisture for the first time this season, along with protein and screenings," Mr Geary said.
"So for the 2002 season, where the quality profile of the crop was generally high protein with low moisture, growers will be receiving a larger proportion of their returns from the cash component rather than through the declared basis," Mr Geary said.
Growers in the 2002 AWB Basis Pool have on average received about $10 per tonne in additional quality payments, compared to the 2001 contract, which is not reflected in the declared basis.
"Growers need to focus on the weighted average basis results, and if you take those quality payments into account, then the basis result is comparable to past seasons despite a significant decline in international basis recently," Mr Geary said.
For growers to determine their own AWB Basis Pool returns so far, they should include their individual wheat futures and currency hedging results.
AWB second tranche payment is calculated using a June 26 2003 Chicago Board of Trade futures settlement rate of 298.5 US cents per bushel, and an AUD/USD currency hedge settlement rate of 66.59 cents.
The final tranche for the 2002 AWB Basis Pool will be announced in December 2003.
AWB Basis Pool gives growers the opportunity to access the benefits of the active management of AWB National Pool and the Single Desk system, and at the same time choose the timing of their wheat futures and currency hedging.
AWB riskassist provides growers an all-encompassing service that complements the AWB Basis Pool, including wheat futures and currency management, financing of hedge positions and balanced advice on hedging wheat futures and foreign exchange.