Feed market firm in AWB wheat pools

by World Grain Staff
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MELBOURNE, AUSTRALIA — AWB has increased its estimated pool returns (EPRs) for most grades in its 2010-11 season wheat pools by A$5-$8 a tonne this week, with continued strength in the feed grain market being particularly good news, the AWB said on Feb. 8.

AWB’s estimated pool return (EPR) for benchmark APW wheat in the eastern pool is up A$5 to A$370 a tonne, while FED1 is up A$8 to A$285 a tonne and stockfeed SFW1 is up A$5 to A$290 a tonne. In AWB’s western pool APW wheat is up A$5 to A$382 a tonne and ANW1 noodle wheat is down A$10 to A$500 a tonne (FOB, excl GST).

AWB General Manager, Commodities, Mitch Morison said demand across the wheat complex was very strong for both milling and feed grades, with firm corn values setting a base for the whole grains complex.

“High corn values are also encouraging feed grain customers to focus on Australian feed wheat in preference; interest for feed into Europe, Korea and The Philippines is providing good support to prices and provides a very positive picture for growers with grain in our pools or still to commit,” he said. “The premium for quality milling wheat is also very strong, but this almost goes without saying now as the tight supply and demand situation for milling wheat is so well known and has been for some time.

“We continue to hold our wheat pool open for most grades in NSW, Victoria and South Australia to give late-harvesting growers a chance to complete their crops. However, time is certainly running down in these regions too.

“Pools can close without notice, although any grower looking to secure delivery to an AWB pool ahead of closure is welcome to sign a pool access contract that will give them more time to deliver. Transport and paddock access has improved in some regions but just got worse again in others with weekend rain, so we are seeking to be as accommodating as we can.”
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