September 29, 2004

Milling Wheat, Feed Prices Steady In Australia

The Australian Wheat Board has kept the majority of Estimated Pool Returns (EPRs) steady this week.

EPRs for new season feed have been reduced by $10/t, as a result of the weakening international feed market.

For the new season 2004/05 AWB National Pool APW remains at $203/t (FOB, GST Exclusive), APH $224/t and APDR $227/t. There has been no change to 2003/04 EPRs.

General Manager AWB International, Sarah Scales, said international feed prices were being influenced by the US corn prices, which have been forced down in recent weeks.

"With good weather for the US corn and soybean harvest, production estimates are becoming more certain and have actually continued to rise. And this has been a negative force on corn and global feed values," Ms Scales said.

Ms Scales said a stronger Australian dollar has also worked against prices across all grades, although AWB had been able to minimise the impact of this on EPRs.