AWB National Pool has lowered 2004/05 Estimated Pool Returns (EPRs) by $3 - $4 per tonne following a weekly decline in the international wheat market.

Changes to 2004/05 pay grades include a $3/t reduction for the majority of milling grades, with APW down $3/t to $197 (FOB, GST exclusive), APH to $218 and AGP to $187/t. Noodle grades ASWN and APN are both down $4/t, while Durum prices have remained unchanged.

There has been no change to EPRs for the 2003/04 AWB National Pool.

General Manager AWB International, Sarah Scales, said US wheat futures had hit new contract lows in Chicago in the last trading session, with the nearby contract moving below 300 cents per bushel.

“Futures prices dropped during the past week, breaking out of the range they have been trading in for the previous few weeks to set new seasonal lows,” Ms Scales said.

“While there has been no significant change to fundamental supply and demand, prices have been under pressure from a lack of fresh demand and speculation regarding the possible introduction of wheat restitution programs in the EU.”

Ms Scales said the decline had been experienced across all wheat grades, with the futures values for higher protein grades at the Kansas City exchange dropping by the equivalent of about $7.50/t since the last weekly Pool Update.

In response to harvest requirements, AWB has also introduced a number of specialty pay grades to manage the variances in quality in some areas of the wheat belt. AWB has introduced the pay grade FEDS, which is in place to capture feed wheat with higher screenings. The pay grade has the same specifications as feed but will accept screenings of up to 50%. The current EPR for FEDS is $135/t.

In NSW and Victoria, AWB has also introduced HPS (High Protein Screenings), which has the same specifications as the AUW pay grade, and will capture high protein wheat with up to 30% screenings. HPS will have the same EPR as AUW - currently $187/t.

“Introducing these pay grade will allow us to better manage this grain, and generate the best value for all Pool participants. With these specialty segregations in place, we can then get a clear picture of crop quality and work to generate the best return for that grain in the international market place,” Ms Scales said.

AWB has also made adjustments to the 2004/05 Golden Rewards protein payment scales. For the following grades – APH, AH, APW, APWT, ASW, AGP and AUW - AWB will reduce the protein discount for wheat deliveries under 10% protein. The discount for each per 0.1% reduction in protein below 10% was formerly 80 cents, but this has now been reduced to 40 cents per 0.1% change.

The next Pool Update will be Monday 6^th December 2004.

Estimated Pool Return 2004/05 AWB National Pool ($/t FOB, GST exclusive):

Estimated Pool Return 2003/04 AWB National Pool ($/t FOB, GST exclusive):

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