December 19, 2011

AWB's 2011-12 wheat estimated sales returns down

Australia-based AWB Ltd., Friday (Dec 16) revised down its estimated returns on collective sales of wheat grades from the 2011-12 crops.

AWB spokesman Jon White said significant increases in production estimates in Argentina, Australia and Canada, combined with substantial supply of cheap wheat out of South America, has placed further pressure on global prices in recent weeks.

"With harvest nearing completion and consistent farmer sales of higher-quality wheat grades, Australian wheat prices have reduced," he said in a statement.

Wheat market fundamentals are well known now, so global macroeconomic conditions will be the major factor influencing short-term prices, he said.

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 AUD8 (US$7.92) to AUD264 (US$261) a tonne, free on board, while the estimated return on Australian Prime Hard grade one was also cut AUD8 (US$7.92) to AUD359 (US$356).