April 21, 2008

Australia's AWB cuts estimated returns on 2008 wheat pool

Australian wheat exporter AWB Ltd. (AWB.AU) Monday cut its estimate of pool returns on collective export sales from benchmark wheat to be harvested late in 2008, citing falls in volatile international wheat futures markets and a stronger Australian currency.

Growers need to be aware that 2008 pools are not currently supported by a hedging programme and will fluctuate by the price moves seen globally, Mitch Morison, general manager of AWB's Australian commodity management division, said in a statement.

AWB now estimates its pool return for the 2008 benchmark Australian Premium White grade of 10.5 percent protein will return a gross range of AUS$380 to AUS$400 a tonne, FOB, down AUS$20 from its estimate two weeks ago.

Morison said that over the past several weeks AWB has met with representatives of a number of Japanese trading houses and obtained feedback on their noodle wheat requirements, hence the issue of the estimated pool returns.

AWB, the majority exporter from Australia, pools returns from its collective export wheat sales and deducts costs before paying growers. Sales from a pool can continue for more than 18 months after harvest, depending on production and demand.