AWB 2008/09 Estimated Pool Returns (EPR) have been reduced by $15 a tonne due to a significant fall in US wheat futures over the past fortnight. The EPR range for APW wheat is now $365 - $385 (FOB, GST exclusive) and the Western Australian noodle grade wheat is $370 - $390 (FOB, GST exclusive).
AWB Australia Commodity Division General Manager, Mitch Morison, said US wheat futures had dropped significantly, in response to a range of factors and although the Australian dollar was also weaker, it was not enough to offset the futures decline.
“The market is showing a lot of volatility and responds rapidly to changes. US wheat futures and cash sales prices had been rallying strongly on the back of solid export sales of US wheat to Iran, but once the prices went up, the sales rapidly dropped off and US wheat futures went into decline,” Mr Morison said.
“The US futures market has also taken some encouragement from recent rain in parts of Australia.
“Crop estimates in the EU, Russia and Ukraine have all been revised significantly higher in recent weeks, placing further downward pressure on the market.
“The market will look to take direction in the next few weeks from the US Department of Agriculture’s 12 September report of World Agricultural Supply and Demand, and then will look at ABARE’s Crop Report for Australian figures on 16 September,” he 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.
* WEA disclaimer - "AWB’s ability to export wheat in bulk is dependant on being granted accreditation under the Wheat Export Accreditation Scheme."
Media Inquiries: Peter McBride on 03 9209 2174 or 0417 662 451
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