Australia's AWB cuts estimated pool price for 2009-10 wheat

Australian agribusiness AWB Ltd. Monday (Oct 12) cut its estimated return on collective sales of wheat from the 2009-10 crop year, citing a strengthening Australian dollar.

The estimated pool return for benchmark Australian Premium White grade in AWB's Western Pool is now A$250 (US$225) a tonne free on board, while the Eastern Pool is A$258 (US$232)/tonne, both down A$5 (US$4.5) from the previous review in September.

Global cash prices and US wheat futures are slightly higher since the last review, but the strength of the currency continues to have a negative impact on Australian wheat prices, Mitch Morison, AWB's General Manager Commodities, reported in a statement.

The company reported last week that it has received commitments from growers to pool their wheat for collective sales covering more than one million tons from the harvest this crop year ending March 31, 2010.