AWB has increased its 2008/09 Estimated Pool Return (EPR) range by $30 a tonne due to stronger US wheat futures.

The EPR range for APW wheat is now $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 increase reflects a strengthening of international wheat futures prices and a fall from 20 year highs in the Australian dollar.

“The recent rally in US wheat futures are being underpinned by rising corn values, driven by wet weather in the US corn belt creating concerns on yields,” Mr Morison said.

“Concerns over Australian conditions in some wheat growing areas following recent disappointing rains versus predicted falls are also supporting wheat prices.

“However we have seen some aggressive marketing of the large crops from Eastern Europe, which are undercutting current US values, and limiting physical wheat price increases.

“Additionally, shipping costs have been at historically high levels, increasing the transport costs which adding to the landed value of wheat to mills. This higher cost is impacting on milling purchases and limiting gains in wheat prices,” Mr Morison said

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