| ||Media Release: AWB $10 early commitment premium opportunities|| ||
AWB will be offering $10 a tonne early commitment premium pool contracts from Monday, 14 September, to enable growers to capture additional benefit from AWB’s 2009/10 season wheat pools.
The contracts offer delivery dates from the end of November right out to the end of January 2010, depending on location, and 10% tonnage tolerances. They will be available until 16 October, but may close earlier if fully subscribed.
AWB General Manager Commodities, Mitch Morison, said that grower feedback to AWB was that the features of this upcoming contract were what growers were looking for in the later part of the season.
“This is the second in our series of early commitment premium pool contracts, after growers showed very strong support for our first contract and we reached our tonnage limits in less than two weeks,” Mr Morison said.
“A frequent comment from growers is that our contracts form a valuable part of their risk management strategy, with some tonnage in our earliest contract, then more planned for our next contract with its wider tolerances and later dates.
“It’s a marketing strategy that allows for crop variability and seasonal performance, which is eminently sensible.
“We have developed these products after talking with grower customers who used them last year, so our two-stage premiums are very much a customer response.
“Growers appreciate the opportunity to lock in premiums and they know their commitment of tonnage benefits the pool management program; indeed the wheat already contracted has enabled our sales, commodity hedging and currency management activities to commence, which is precisely the intention.
“I would encourage anyone interested in this next contract to talk to an AWB Grain Marketer or call the AWB hotline on 1800 054 433,” Mr Morison said.
AWB encourages growers to check the AWB website and familiarise themselves with the terms and conditions for its 2009/10 season wheat pools, before entering into wheat supply contracts.
* WEA disclaimer - "AWB’s ability to export wheat in bulk is dependant on being granted reaccreditation under the Wheat Export Accreditation Scheme."
AWB media contact: Ian Desborough 03 9209 2335 or 0418 853 881
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