December 21, 2004

Australia AWB Holds Estimated Returns On Benchmark Wheat

Australia's monopoly wheat exporter AWB Ltd. monday held unchanged its estimate of returns from sales of its benchmark wheat type grown this crop year ending March 31, 2005.

As a result, AWB estimates its benchmark new crop Australian Premium White type wheat of 10% protein will still return A$197 a metric ton free on board, exclusive of a 10% goods and services tax.

In a statement, AWB said currency and commodity markets have remained steady in the previous two weeks, with no significant change to wheat market fundamentals.

AWB sells wheat collectively on behalf of growers through a pooling system and attempts to estimate average returns from sales spread across the marketing year, which started Oct. 1.

It deducts storage, handling, transportation and other costs before passing on returns to growers.

The company exports most wheat it receives from growers, making it a major global supplier. It also trades in the domestic market.

AWB will next update its estimates of pool returns Jan. 4 2005.