January 5, 2005

AWB Lowers Australian Wheat Price Outlook

The Australian wheat marketing board, AWB International, left projected returns for the number 1 pool for the 2004-05 marketing year unchanged, but lowered the outlook for the number 2 pool by A$3 per metric ton (MT) for all grades included in that pool.

For the 2004-05 Number 1 AWB National Pool, benchmark APW remains at $197 MT (FOB, GST exclusive), while APH is $216.50 MT. For the 2003/04 AWB National Pool, APW remains at $228 MT.

However, AWB has reduced the 2004-05 Number 2 AWB National Pool EPRs by $3 MT due to the stronger Australian dollar and a lackluster commodities market over the Christmas and New Year holiday period. This activity has negatively impacted the 2004-05 Number 2 pool while the 2004-05 Number 1 pool has remained protected due to AWB's currency hedging program.

The 2004-05 Number 2 pool was opened on the 20th December 2004 following the closure of the 2004-05 Number 1 pool for deliveries in Queensland. All EPRs for the Number 2 pool are currently at a $15 MT discount of those of the Number 1 pool. This means APH is $201.50 MT, while APDR is $207 MT.