AWB 2008/09 Estimated Pool Return (EPR) remains unchanged from the previous estimate.

The EPR range for APW wheat is $370 - $390 (FOB, GST exclusive) and the Western Australian noodle grade wheat is now at $375 - $395 (FOB, GST exclusive).

AWB Australia Commodity Division General Manager, Mitch Morison, said the market has been impacted by strong US wheat futures prices, a stronger Australian dollar and relatively similar European and Black Sea wheat prices since the last update.

“The rally in US wheat futures over the last fortnight continues to be underpinned by rising corn values,” Mr Morison said.

“Extremely wet weather in key US corn states has led to uncertainty over US corn production resulting in continuing high corn values.

“Whether the current high wheat futures prices remain will be largely influenced by the final size of the US corn crop, which will remain uncertain for some time.

“Wheat crops in EU, Russia and Ukraine look to be in excellent condition, with production potential improving with harvest in the Ukraine and Russia to commence in mid July, closely followed by key EU crops.

“Wheat exports from the Black Sea are likely to be strong this season, and this will set the benchmark for world wheat cash pricing to many key import markets going forward.”

Growers are again reminded that the 2008/09 EPR is currently not supported by a hedging program and will continue to fluctuate by price movements in international wheat markets.

AWB will continue to provide regular updates on the 2008/09 season pool estimate going forward.

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

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