Weaker wheat market sees Pool estimates down Weaker wheat prices...

Weaker wheat market sees Pool estimates down Weaker wheat prices and a firmer Australian dollar have contributed to a decline in AWB National Pool Estimated Pool Returns for both the 2004/05 and 2005/06 seasons. For the 2005/06 Pool EPRs are down between $2 and $5/t. Major milling grades for the new season were down $2/t, taking Australian Prime Hard (APH) to $203.50/t and Australian Premium White (APW) to $184/t, while softer wheat types such as Australian Standard White (ASW) and Australian General Purpose (AGP) were down by $5/t. There was no change to the 2005/06 durum pay grades. For the 2004/05 Pool, EPRs for most bread wheat grades are down by $1/t, with APW at $198/t. Noodle and durum grades remain unchanged. General Manager, AWB International, Sarah Scales, said the risk premium in the world grains market had been eroded with no major production problems, and the market had continued to weaken in the past fortnight. “We are looking at a situation where good production is likely to see stocks in the major exporters grow, combined with what remains relatively routine world wheat demand,” Ms Scales said. “The global spread between hard and soft wheat has also widened, with good production and high stocks of soft wheat in the US. This has seen a sharper reduction in values for pay grades such as ASW and AGP, which compete with the softer white and red grades from the US,” Ms Scales said. Ms Scales added that AWB National Pool values were also under pressure from the Australian currency, which had strengthened again in the two weeks since the previous pool update. The next AWB Pool Update will be Monday 29th August 2005. For further information contact Ryan McKinlay 03 9209 2324 or 0408 347 282 AWB (International) Limited ABN 14 081 890 413 380 La Trobe Street, Melbourne, Vic 3000 Australia Telephone 03 9209 2000 Facsimile 03 9670 2782 www.awb.com.au