AWB 2018/19 Season Starter Pool September Update
AWB Pool Programs
AWB today are announcing estimated returns for the Season Starter Pool and they’re increasing for all grades except Noodle wheat across all port zones by between $7 and $30 per tonne. ANW1 and ANW2 EPR’s are being lowered by $1 and $4 respectively in line with the premiums contracting.
Rainfall continues to disappoint in many regions further reducing new crop expectations and driving old crop and new crop wheat prices up by $30 per tonne. In addition, frost has been the latest threat to crops with greatest reductions expected for yields in the WA and VIC regions which further underpin the rally in prices.
As prices climbed we have added another 20% of physical sales to the program, allowing us to crystalize grains and raise the estimated returns.
Global factors continue to weigh on wheat prices. US wheat futures peaked in the beginning of August before tracing back after the USDA increased global production estimates in their latest update. The Australian dollar is once again heavily influenced by economic uncertainty with trade tensions between the US and China helping the AUD push lower. This too has been factored into the strategy and management of the Pool program.
We increased our hedges by 15%, which has brought the program to 70% hedged in-order to protect against a strengthening AUD/USD which may erode wheat values.
For information on other grades and site pricing, refer to the pool returns calculator for your portzone.
The Season Starter pool is a popular marketing and price management product that allows grains growers to have experts actively market and manage their grain over a full twelve month period. It also enables growers to manage their cash flow and get access to production advances to help cover the cost of producing their current year’s crop.
Fore more information contact AWB Grower Service Centre - 1800 447 246
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