May 28, 2007

Australia AWB lifts estimated return on 2007/08 wheat exports
 

Australian wheat exporter AWB Ltd. Monday lifted its estimate of gross returns from pooled export sales for wheat grown this crop year ending Mar 31, 2008, citing ongoing firm world physical wheat prices.

As a result, the benchmark Australian Premium White grade of 10.5 percent protein rose A$5 to a range of A$235-245/tonne (US$192.40-200.59/tonne), free on board, from a previous review two weeks ago.

The estimated return for this grade from the 2006/07 crop was held unchanged at a gross A$234.50/tonne, FOB. The 2006/07 Australian Prime Hard grade of 13 percent protein was held at A$250/tonne, as was Feed grade at A$197.50/tonne and Australian Premium Durum grade of 13 percent protein at A$258/tonne.

David Johnston, acting general manager of AWB's pooled wheat sales programme, said concerns about supply forecasts for Europe and the Black Sea region and their impact on world ending stocks continue to be a focus of the global market, as does production from the US soft red winter wheat crop, which is starting its harvest in the south.

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

The next pool estimate update is scheduled for Jun 12.