Australian wheat growers and trading companies have signalled their support for the 2007-2008 National Pool by committing 1.8 million tonnes of wheat under AWB’s pre-harvest incentive contracts.
AWB General Manager National Pool, David Johnson said over 2,500 pre-harvest contracts have been signed by wheat growers and trading companies in Western Australia, South Australia, New South Wales, Victoria and Queensland.
“This is a very good start to the 2007-2008 National Pool and should give wheat growers confidence that AWB will be able to successfully manage and market the Pool this year,” Mr Johnson said.
“The pre-harvest commitments enable AWB to plan, manage and capture the value of higher priced sales in late 2007 and early 2008.
“It will also enable AWB to plan and execute forward sales contracts with key Pool customers who are keen to lock in contracts given the shortage of grain on global markets.
“The National Pool continues to actively manage its hedge positions and we are making physical sales, which will keep moving forward as harvest progresses.”
Mr Johnson said the high level of pre-harvest contracts provides confidence of further wheat deliveries to the 2007-2008 National Pool once the harvest gets into full swing in the next month.
“This gives AWB confidence that we will be able to conduct an effective 2007-2008 National Pool despite the drought affected nature of this year’s harvest, strong domestic demand for milling and stock feed industries, existing bulk wheat export permits, deregulation of wheat exports in bags and containers and the low level of carry over stocks from 2006-2007.
“To assist the domestic market the National Pool will commence domestic tender sales from the 1st December 2007.
“Growers need to be aware that there will be no guaranteed access dates associated with the 2007-2008 National Pool and the 2007-2008 Number 1 National Pool may close without notice following the completion of harvest. This is to protect the financial equity of growers who deliver early to the National Pool.
“If required, AWB will open a 2007-2008 Number 2 National Pool when it closes the Number 1 National Pool. However, it is likely that the Number 2 Pool EPRs will be of lower value due to the anticipated price reduction in world wheat prices as we head into the northern hemisphere harvest in mid to late July 2008.”
Media contact: Peter McBride on 03 9209 2174 or 0417 662 451
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