Growers using the AWB Basis Pool for the 2004/05 season will benefit from a firm third and final tranche basis of US 30.5 cents per bushel (US c/bu).
AWB General Manager Trading, Peter Geary, said AWB had delivered a consistent final basis result to provide an overall weighted average basis for the contract of 33.83 US c/bu.
Mr Geary said the third tranche result was based on a Chicago Board of Trade settlement price of 297 US c/bu, and an AUD/USD Hedge Settlement Rate of 0.7385 cents.
"To determine individual payments, growers must take into consideration their own currency and wheat futures hedging results, as well as their Golden Reward quality payments for protein, screenings and moisture," Mr Geary said
"This third tranche reflects a competitive basis environment during the second half of the year due to an abundance of global supplies of soft wheat, with support being provided by a tighter hard wheat balance sheet."
Mr Geary said tranche results reflected the actual futures and foreign exchange values on the third tranche date, however many growers had seized opportunities to hedge currency and commodity prices early, insulating their returns from price volatility
"A number of growers using AWB RiskAssist services who did take futures and currency hedging opportunities early, are now on track to achieve an AWB Basis Pool return for APW of $220 - $230 per tonne (FOB GST Exclusive)," Mr Geary said.
Participants will receive the final equity payment this week of $24.44 per tonne (FOB, GST exclusive) for APW 10 per cent protein, 5 per cent screenings and 12.5% moisture plus applicable varietal grade premiums and Golden Rewards increments (which are not included in the basis result).
AWB RiskAssist has recently launched a comprehensive range of new price risk management products, as a result, the Basis Pool will not be offered for the 2005/06 season. Growers wishing to participate in RiskAssist's new product range, including the AWB Hedge Account with Exchange or SWAP Plus pricing, AWB Fixed Basis or AWB Flexi 3 contracts, should call their local Grain Marketer for further information.