April 16, 2007

Australia AWB lowers estimated returns on wheat exports
 

Australian wheat exporter AWB Ltd. Monday reduced its estimate of gross returns from pooled export sales for the 2006/07 crop year by A$3/tonne (about US$2.50/tonne) across the board due to the appreciation of the Australian dollar against the US dollar.

As a result, benchmark Australian Premium White grade of 10.5 percent protein grown this crop year ending Mar 31 is estimated to return a gross A$234.50/tonne, on a free on board basis.

Australian Prime Hard grade of 13 percent protein now stands at A$255.00/tonne. Australian Premium Durum grade of 13 percent protein is estimated to return A$258/tonne and feed grade A$197.50/tonne.

The forecast range for the next crop year has been reduced by A$10/tonne, and as a result, Australian Premium White grade is now forecast at A$230-240/tonne and Australian Premium Durum at A$235-245/tonne, FOB.

Acting General Manager of the National Pool David Johnson said the reason for the reduction in 2006/07 and 2007/08 forecasts was the continued strengthening of the Australian dollar, which is affecting all Australian exports.

AWB pools returns from its export wheat sales and deducts costs before paying producers. Sales from a pool can continue for up to 18 months after harvest, depending on production and demand.

The next pool estimate update is scheduled for Apr 30.