AWB today increased its Estimated Pool Return (EPRs) for the 2008/09 AWB Western Pool by $5 a tonne (except durum grades), although held its EPR for the AWB Eastern Pool unchanged (except durum 2).

The EPR for APW1 in the Eastern Pool remains at $326 (FOB, GST exclusive) and the durum grade DR1 remains at $440 (FOB, GST exclusive). 

The EPR for APW2 in the Western Pool increased by $5 a tonne and is now $323 (FOB, GST exclusive) and the noodle grade EPR is similarly up $5 to $323 (FOB, GST exclusive). 

AWB Australia Commodity Division General Manager, Mitch Morison, said that although wheat prices in both the futures and cash markets had continued to decline in the two weeks since the last pool update, the decline in the Australian dollar had offset the drop. 

“From a grain export perspective, the drop in the dollar has been most beneficial, because it has protected growers, on this occasion at least, from seeing the drop in the world wheat market and even given growers in Western Australia a slight improvement,” Mr Morison said.

“In the two weeks since our last update, Chicago wheat futures have dropped almost 12 per cent, as investors have taken their cue from the world sharemarket and exited from commodity investments as well.

“In the cash market, wheat from the European Union and the Black Sea region continues to aggressively compete for business, and with a large Australian harvest soon to be available for export on top of this, prices are under pressure.

“On the positive side, Australian growers are already making their marketing decisions, with strong interest shown in the $10 a tonne early commitment premium we were offering on our pool contracts up until 10 October.

“We are pleased, indeed honoured, by the confidence those growers have shown in us and have now started managing commodity and foreign exchange exposure on the contracted tonnage, with that cover to increase when physical deliveries commence,” Mr Morison said.

AWB reminds growers that standard pool contracts continue to be available and that our pools can close at any time, without notice. Growers who contract into AWB wheat pools will be required to fulfil contract commitments to AWB as outlined in the terms & conditions.

Terms & Conditions and protein increments for the 2008/09 season can be obtained from the AWB website (www.awb.com.au) or by calling the AWB Grower Service Centre on 1800 054 433. 

Media Inquiries:  Peter McBride on 03 9209 2174 or 0417 662 451

EASTERN POOL - Estimated Pool Return 2008/09 AWB Pool ($/t FOB, GST exclusive):

 WESTERN POOL - Estimated Pool Return 2008/09 AWB Pool ($/t FOB, GST exclusive):

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