January 25, 2010

AWB cuts estimated pool returns on 2009-10 wheat sales

Australian wheat exporter AWB Ltd. announced cuts to estimated pool returns from collective sales of wheat from the harvest this crop year ending March 31, 2010.

The estimated return on benchmark Australian Premium White grade wheat of 10.5% protein in the Eastern Pool was cut A$9 (US$8.15) to A$254 (US$230.24) per tonne free on board, while the return on benchmark wheat in the Western Pool was cut A$8 (US$7.25) to A$249 (US$225.70).

AWB general manager commodities Mitch Morison said international wheat cash values and US wheat futures have fallen in the past week or so, while a strong Australian dollar also pressured estimated returns.

"The latest USDA report indicated that global demand for wheat has dropped significantly, resulting in high world wheat stocks, which has led to a reduction in international prices," Morison said.

AWB estimated pool returns remain above the current domestic cash price, though this has fallen in the recent weeks, he said.