October 25, 2011
Australian wheat collective sales revised down
The forecast returns on collective sales of most Australian wheats from the 2011-12 crop is slashed due to recent plummets in US wheat futures, according to the Australia-based wheat exporter AWB Ltd. (AWBZY), a unit of Cargill Inc., Monday (Oct 24).
The company slashed its estimated returns on pooled sales of benchmark Australian Premium White grade wheat of 10.5% protein in the eastern pool by AUD20 (US$20.95) to AUD270 (US$282.84) a tonne, free on board, while the estimated return on Australian Prime Hard grade was left unchanged at AUD337/tonne (US$353.02).
AWB spokesman Jon White said despite recent falls in US wheat futures, high-protein wheats are holding well amid global support.
"We are seeing strong export interest from Asian millers for high-protein Australian wheat, and prices are also being assisted by expectations of a lower-than-average protein profile in the 2011-12 Australian crop," he said.
By the same token, prices for medium- and lower-protein wheats have "reduced dramatically, with Australian values falling significantly," to the point where they are now pricing competitively in global export markets, he said.