June 25, 2007

  

Australia AWB lifts estimated return on 2007/08 wheat exports
 

 

Australian wheat exporter AWB Ltd. Monday (Jun 25) lifted its estimate of gross returns from pooled export sales for wheat grown this crop year ending Mar 31, 2008, citing continuing strong world wheat cash prices.

 

As a result, new crop benchmark Australian Premium White grade of 10.5 percent protein rose A$5 to a range A$255-265/tonne, free-on-board, from a previous review two weeks ago.

 

Estimated returns for 2006/07 pools were not altered, leaving the benchmark grade unchanged at a gross A$234.50/tonne, FOB; 2006/07 Australian Prime Hard grade of 13 percent protein at A$250.00/tonne; Feed grade at A$197.50/tonne and Australian Premium Durum grade of 13 percent protein at A$258.00/tonne.

 

David Johnston, acting general manager of AWB's pooled wheat sales programme, said the ongoing strength of world wheat cash prices is primarily driven by further delays in the US Hard Red Winter wheat harvest.

 

The impact of a stronger Australian dollar has partially offset the rise in the commodity price, he said in a statement.

 

The 2005/06 and 2006/07 pools are well advanced in their price programmes and hence are less susceptible to international price movements, he said.

 

AWB said it would make further financial distributions to wheat growers from these pools in July.

 

A sixth distribution will be made from the 2005/06 pool in the week starting Jul 16 and a second distribution from the 2006/07 pool in the week beginning Jul 2, it said.

 

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 Jul 9.

 

A$1=US$0.8476 (Jun 25)