December 8, 2010

AWB reports firm export market for feed wheat

A firm market exists for Australian exports of feed and stockfeed wheat grades due to significant interest from customers in Asia and the Pacific, said Mitch Morison of Agrium Inc.'s Australian unit, Tuesday (Dec 7).

He was commenting while increasing estimated pool returns for most grades of wheat grown in the current crop year ending March 31, 2011.

"Higher quality grain continues to lead the market upward, although stockfeed grades are firm as well," he said.

AWB, Australia's biggest wheat exporter in 2009, lifted its estimated pool return for benchmark Australian Premium White grade wheat in the eastern pool by AUD48 (US$46.91) a tonne or 15% to AUD362/tonne (US$353.79), free on board.

Australian Premium White grade wheat in the western pool rose AUD42 (US$41.05) or 13% to AUD376/tonne (US$367.47), while Stockfeed Wheat grade 1 in the eastern pool rose AUD16 (US$15.64) to AUD290/tonne (US$283.42), and Feed wheat grade 1 in the eastern pool edged AUD2 (US$1.95) higher at AUD271/tonne (US$264.86).

Estimated returns for hard milling wheats, indeed for all wheat, jumped in the past week on the back of resurgent global markets.

The international wheat market had surged in the past week as consumers began to appreciate just how much Australia's supply of high-protein wheat was likely to be reduced by wet weather in eastern Australia, Morison said.

"The market is continuing in strength for high-quality wheat, although perhaps the more important news for growers in eastern Australia is that we are seeing a firm export market for stockfeed grades as well," he said.