January 5, 2012

The majority of AWB 2011/12 season estimated pool returns (EPRs) have increased by AUD3 (US$3.09)-AUD10 (US$10.3) a tonne following a review of the EPRs.

The exception is durum grades which remain unchanged.

AWB's 2011/12 EPRs for APW Wheat is now AUD275 (US$284) a tonne and ANW noodle wheat is AUD290 (US$299) a tonne in the WA Pool, APW is now AUD264 (US$272) a tonne in the SA Pool and AUD267 (US$267) a tonne in the Eastern Pool.

AWB's Jon White said: "Since mid December 2011 US wheat futures have rebounded strongly due to a number of market fundamentals and technical factors."

"Fundamentally we have hot and dry conditions in South America impacting the soy and corn crop, resulting in increases in soy values. The rallying soy market is positively impacting corn values and subsequently pushing wheat values higher."

"Technically US wheat futures have also been supported by investment funds who have been rebalancing their portfolios since the New Year begun by buying wheat futures.

"In spite of increases in wheat futures, Australian spot price wheat values have not kept pace due to harvest selling pressure locally resulting in a weakening Australian basis. The pool estimates are signalling the ability to capture significantly improved basis levels from those present today over the extended pricing window of the pool."

"The majority of grades in the WA Pool have increased by AUD10 (US$10.3) a tonne due to increased international customer demand and WA farmers not as aggressively marketing their crop."

"Farmers need to remain diligent when comparing wheat pool returns and should take into account the timing and accuracy of estimated pool returns. AWB regularly updates its EPRs to accurately reflect the current state of the market and our view of the market over the life of the pool to give farmers a realistic estimated final value," White said.