AWB 2008-09 wheat pools to make fourth distribution

On Wednesday (Jan 13), AWB will make a fourth distribution of A$145 million (US$135 million) FOB GST exclusive.

After the deduction of supply chain costs, AWB will provide a A$131 million (US$122 million) net payment to pool participants who delivered to the 2008-09 wheat pools.

AWB General Manager Commodities, Mitch Morison, said the distribution would mean AWB's 2008-09 pools were well over 90% paid out for most grades, with durum grades being 100% paid.

''Just before Christmas we advised that estimated returns from this pool had increased and that we intend to finalise all payments in March, which will be a month ahead of schedule,'' Morison said.

He said this pool was able to increase its value since harvest deliveries started, despite a fast-declining world market during 2009. AWB was able to supply wheat to many customers who missed out due to drought in earlier seasons, and they were able to generate greater value for growers through strong payment performance and by bringing cash flow forward, said Morison.

Growers using AWB's Harvest Finance products in the current 2009-10 pool will see a top-up applied for advance payments and harvest loans in late January, with details of rates to be available by then, he said.

''Our 2009-10 wheat pools are still open and receiving for all grades except durum, with benchmark APW grade wheat estimated at A$263 (US$244.7) a tonne in the Eastern Pool and A$257 (US$239.1) a tonne in the Western Pool,'' Morison said.