July 9, 2007

 

AWB keeps estimated return on 07-08 wheat exports unchanged

 

 

Australian wheat exporter AWB Ltd. (AWB.AU) Monday held unchanged its estimate of gross returns from pooled export sales for benchmark wheat grown this crop year ending March 31, 2008.

 

As a result, new crop benchmark Australian Premium White grade of 10.5 percent protein was held in a range of A$255-A$265 a tonne, FOB, unchanged from a review two weeks ago.

 

However, it raised its estimated return for Australian Premium Durum grade by A$5/tonne to a range of A$260-A$270, a rise driven by a lower than expected European durum harvest, both in terms of yield and quality, which has pushed up prices in Europe, it said.

 

David Johnston, general manager of AWB's pooled wheat sales programme, said the broader wheat market has been supported by continued delays in the US Hard Red Winter wheat harvest and concern about the European harvest.

 

The market's focus is shifting to grain quality, which will become clearer in the coming weeks, he said in a statement.

 

A strengthening Australian dollar continues to partially offset the rise in world wheat cash prices for the 2007-08 pools, he said.

 

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

 

Nor did AWB change its estimate of returns for 2005-06 pools, with the benchmark Australian Premium White grade holding at AUS$192/tonne.

 

The company will make a sixth distribution to growers from the 2005-06 pool July 18, which will cover most of the pools' outstanding funds, 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 July 23.