Highlights

• Early commitment premium of $15 a tonne for the 2011/12 wheat pools
• Golden Rewards with increments paid for protein, screening and moisture on bin grades APW and better
• Initial payments 75% of the Nominated Estimated Pool Return (NEPR) less all estimated costs
• Eastern Pool – APW1 wheat forecast at $290 a tonne
• South Australian Pool – APW1 wheat forecast at $295 a tonne
• Western Pool – APW2 wheat forecast at $305 a tonne and ANW1 wheat forecast at $325 a tonne
  AWB* today announced that it will be offering an early commitment premium of $15 a tonne to those farmers who make the early decision to sign up to AWB’s 2011/12 season wheat pools, with the new contract available from today.   

AWB* also released its first estimates of wheat pool returns for the 2011/12 season, with benchmark grade APW2 wheat forecast at $305 a tonne (FOB, Excl GST) and ANW1 noodle wheat at $325 a tonne (FOB, Excl GST) in the Western Pool, APW1 wheat at $290 a tonne (FOB, Excl GST) in the Eastern Pool and APW1 wheat at $295 a tonne (FOB, Excl GST) in the South Australian Pool.

AWB*’s  Jon White said the Estimated Pool Returns announced are reflective of where we see Australian wheat values today combined with our forward outlook on wheat prices.

“With crop sowing programs completed across Australia’s wheat belt, farmers are now turning their mind to marketing this year’s crop, so estimates are timely at this stage,” Mr White said.

AWB*   calculates its pool estimates with reference to international and domestic stock, production and price levels and its expectations around how the Australian dollar will perform, all of which impact grower returns.

“When we look at the market today, world wheat production and consumption are forecasted slightly higher than last year, however, the recent return of Russian export wheat is impacting world wheat prices,” Mr White said.

“Concerns regarding the Northern Hemisphere wheat crop have dissipated and wheat production forecasts for the EU and Russia have increased along with an improving planting outlook for Canadian and US.

“These factors are increasing world export and trade supply without corresponding importer demand placing pressure on wheat prices.

“For the balance of 2011 the currency outlook for the Australian dollar remains supportive which will continue to weigh heavily on Australian wheat prices,” Mr White said.

Regarding the 2011/12 wheat pools, AWB* has acted on farmer feedback and has reintroduced the increment based quality payment system – Golden Rewards – for bin grades APW and better and continues to offer an ECP of $15 a tonne to those farmers who commit early to the 2011/12 Pools Trust.

“Initial pool payments are 75% of the NEPR as farmers have indicated that maximising cash flow is important and AWB* will continue to make funds available within seven days of delivery at harvest,” Mr White said.

“We have also opened a South Australian wheat pool.

“We see our pools as part of a grower’s broader marketing strategy, which is certainly what our grower clients are telling us; they are seeking simplicity, security of payment, transparency and performance and that’s what we provide.

“Grain marketing is very competitive these days, so we encourage farmers to fully investigate the available options when deciding whose pool products to use and how they might fit their personal strategy,” Mr White said.

AWB media contact: Peter McBride 03 9268 7362 or 0417 662 451
 

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