September 3, 2007

Australia AWB again lifts estimated returns on 2007 wheat crop
 

Australian wheat exporter AWB Ltd. Monday (Sep 3) again lifted its estimated pool returns for various grades of the crop to be harvested late- 2007, reflecting ongoing strength in the global market.

The estimated gross return on new crop benchmark Australian Premium White grade of 10.5 percent protein rose A$14/tonne to A$314/tonne, free on board basis, building on a A$30/tonne rise in the previous review two weeks earlier.

The estimated gross return for new crop Australian Premium Durum grade was put at A$390/tonne, up A$20/tonne from the previous estimate, new crop Australian Prime Hard grade of 13 percent protein is estimated to return A$328/tonne, up A$20/tonne, while new crop Feed grade is estimated to return A$234/tonne, up A$14/tonne from two weeks earlier.

These increases in estimates mostly reflect both a high December 2007 US wheat futures price driven by a strong world wheat market, and a lower July 2008 US wheat futures price that factors in a potential increase in volume from the 2008 northern hemisphere crop, AWB said in a statement.

All estimates of returns from the old crops were held unchanged.

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 harvesting, depending on production and demand.

AWB issues estimated pool returns every two weeks, and the next pool estimate update is scheduled for Sep 17.