January 20, 2012

GrainCorp raises forecast pools returns for 2011-12 wheat crop

GrainCorp has raised its anticipated pools returns for the wheat harvest in 2011-12 by US$5 to US$15 per tonne, depending on grade and port zone.

GrainCorp pools manager Stuart Clarke said the company was in a position to revise its pool estimates due to the recent market rally. "Dry, hot weather through the South American corn regions is causing concerns over potential crop reductions, with the threat of tightening global feed grain supply," Clarke said. "This has a knock-on effect to the wheat market with the potential increase in demand for wheat into stockfeed rations globally."

Revisions were made for most grades, with the largest revisions made to FED1, SFW1 and ASW1 due to the potential increase in demand for these grades. NSW ASW1 EPRs have been revised up to US$250 per tonne free on board (FOB), a US$12 per tonne increase for Port Kembla zone and an increase of US$4/tonne for Newcastle zone; Victorian ASW1 EPRs are up US$14 per tonne to US$250 per tonne FOB; South Australian ASW1 EPRs are up US$16 per tonne to US$252 per tonne FOB; Western Australian ASW1 EPRs are up US$18 per tonne FOB to US$256 per tonne FOB; and s FED1 and SFW1 EPRs have been increased by US$8-$13 per tonne across all states.