MELBOURNE, AUSTRALIA — The 2010-11 Australian Wheat Board (AWB) season wheat pools will make its second distribution of A$133 million (FOB GST excl) to pool participants today. After deduction of supply chain costs, the net payment to growers will be A$111 million (excl GST).

AWB Regional General Manager Jon White said the wheat pools pricing and sales program was progressing well, despite a very volatile and challenging market.

"Globally, demand for Australian wheat remains strong with recent sales comprising a mixture of grades from both pools," White said. "We’ve physically sold 65% of pool wheat to customers in Africa, South East Asia and the Middle East.

"Our physical sales program remains well supported by our commodity and currency hedging programs with high levels of cover in place. However our pools are still exposed to basis risk should Australian wheat prices decline.

"With this latest distribution of 25% — 28% of pool value, grade-dependent, we will have paid out between 49% — 55% of estimated pool value across the full range of wheat grades making the cumulative distribution payments one of the fastest on record for AWB.

"This means we are on track with our estimated payment schedule, which pool participants will see in whatever pool payment option they are utilizing, and with the next distribution expected in October," White said.