MELBOURNE, AUSTRALIA — The Australian Wheat Board (AWB) said on Oct. 18 that it has made its third financial distribution of A$160 million (FOB GST excl) to pool participants in the AWB 2011-12 wheat pools. After deduction of supply chain costs, the net payment to farmers will be A$129 million (GST excl).
“This financial distribution represents a strong payment lifting cumulative equity payments to 70% or higher for all grades and accounts for approximately 88 per cent for freight, port and storage and handling costs,” AWB’s Richard Williams said. “This payments shows we are on track with our estimated payment schedule, which farmers will see in whichever pool payment option they are utilising. We are also on track to meet payment levels estimated in the next distribution due in January.”
The AWB’s 2011-12 Estimated Pool Returns (EPRs) remain unchanged, APW wheat remains at A$272 a tonne and ANW noodle wheat is A$281 a tonne in the WA Pool, APW is A$265 a tonne in the SA Pool and A$266 a tonne in the Eastern Pool (FOB, excl GST).  
“Although our pools benefited from the rally in wheat prices from July we have faced logistics and shipping challenges that were unplanned due to port closure and port congestion in many geographies,” Williams said. “Today our pool estimates remain supported with very little open price exposure remaining.  However there is still small degree of hedge optionality in our program that will allow upside participation but put a floor under current market prices and we will endeavor to capture further value from export or local markets where possible.”