October 9, 2006

 

Australia's AWB lifts estimated returns on wheat exports

 

 

Reflecting strong demand, Australian wheat exporter AWB Ltd. (AWB.AU) Monday (Oct 9) lifted its estimate of gross returns from pooled export sales of new crop benchmark Australian Premium White grade of 10.5 percent protein by AUS$8 a tonne to A$240/tonne (US$104.2/tonne).

 

Most other new crop grades were also increased by AUS$8-AUS$12 (US$6-US$9), with returns from Australian Prime hard grade of 13 percent protein estimated to rise AUS$5 to a gross AUS$265/tonnes (US$197.25), while Australian Premium Durum grade of 13 percent protein was increased by A$8 (US$6) to A$248/tonne (US$184.6) from the previous review two weeks ago.

 

David Johnson, acting general manager of AWB's export pool, said a combination of domestic sales and international demand for hard wheat has resulted in the fourth consecutive increase for new crop estimates.

 

"We have been able to capture significant value for hard wheats due to cash values for other origin wheats (French and Black Sea) rallying, which is narrowing the gap between hard and soft wheat prices. This is improving sales values, in particular for hard wheats," he said in a statement.

 

Due to continuing dry conditions, AWB has also sold into the domestic market, which is particularly strong for this time of year, he said.

 

The estimate of returns for the number one pool benchmark old crop wheat rose by A$1 (US$0.74) to A$191/tonne (US$142/tonne)..

 

AWB pools returns from its export wheat sales and deducts costs before paying producers.

 

Most of the crop is usually harvested in November and December.

 

The next review of pool returns is scheduled for Oct 23.