WEST PERTH, AUSTRALIA — CBH Grain said on July 11 that it has revised downwards the estimated pool returns for its 2010-11 Wheat Harvest Pool in eastern Australia by around A$5 per tonne following the recent turbulence in world grain markets.

CBH Grain Eastern Australia Manager Chris Ayers said prudent hedging strategies had to date protected the pool from the majority of the fall in international prices.

Howeve, some adjustment had been necessary across all grades and further reductions could not be ruled out given the pressures and volatility in the market.

Ayers said international wheat prices had fallen significantly following the U.S. Department of Agriculture's (USDA) recent crop update and the prospect of additional volumes of grain being available in the Black Sea region.

"Logistical challenges in eastern Australia are also putting some pressure on pool equities as difficulties in getting grain to export positions increases time-based storage and handling charges," Ayers said.

CBH Grain has just completed a second round of payments totaling A$95 million to growers participating in the 2010-11 pool.