November 16, 2004

Australia AWB Holds Estimated Returns on Benchmark Wheat

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

Therefore, AWB estimates its benchmark new crop Australian Premium White type wheat of 10% protein will still return A$200 a metric ton gross free on board and exclusive of a 10% goods and services tax.

AWB's estimated pool return for its top durum grade increased A$4 to A$223/ton.

"The change is in response to continued market uncertainty surrounding durum quality in Canada - the world's largest durum producer - which has been supportive for current durum values," AWB said in a statement.

Estimated returns for all new season milling grades were unchanged, despite a rising Australian dollar and a relatively flat international wheat market.

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, and also trades in the domestic market.

AWB will next update its estimates of pool returns on Nov. 22.