Growers of noodle wheat have fully subscribed AWB’s $15 a tonne early commitment premium contracts for noodle wheat varieties, only two days after the offer opened.
Contracts are still available for milling wheats and durum varieties, although the premium for noodle varieties is now closed.
Spokesman for AWB’s Australian Commodity Management division, Stuart Richardson, said interest in the contracts was enormous as growers sought to lock in premiums.
“Across all types of wheat we are seeing growers coming back who have used our early commitment contracts in previous years – they tend to be the first people who call, so clearly they like these enhancements to our pool products and they know the offers are for limited tonnages,” Mr Richardson said.
“The speed of the response tells me that growers are watching for good marketing opportunities and our early commitment premium is meeting their needs.
“Our tonnage limits are greater for multigrade milling wheat contracts, however they may not last until our planned closure date of 4 September if growers keep up the current rate of interest.
“Growers have told us they are building sales programs that include both pool products and plans for cash sales, so they spreading both their risk and managing cash flow needs.
“It’s a strong endorsement of our pool performance and the marketing service we offer.
“For noodle wheat growers who have missed out this time and indeed all growers, we are offering another contract from 14 September with a $10 a tonne premium, which gives growers a later delivery window and wider delivery tolerances, so there will be another opportunity,” Mr Richardson 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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