May 23, 2006

Australia's AWB ups estimate of returns from wheat sales
 

Australian wheat exporter AWB Ltd. lifted its estimate of returns from pooled export sales for the new crop to reflect the stronger world market, the company said late Monday (May 22).

As a result, it now estimates that benchmark Australian Premium White wheat would return in a range of AUS$210 (US$158.5)-AUS$220 (US$166) a tonne, before costs, free on board, up A$15 (US$11.3) from a previous review two weeks ago.

Sarah Scales, general manager of AWB's international unit, said a recent rally in world wheat prices and a bullish outlook by the USDA supported the increase in the estimates.

"In recent weeks, we have seen US grain prices rally, largely due to significant fund activity and ongoing dry weather in the US," she said in a statement.

AWB operates a wheat export monopoly in Australia, pooling revenue from sales and deducting costs before passing on returns to growers.