MELBOURNE, AUSTRALIA — The Australian Wheat Board (AWB) said on Sept. 28 that it will close its A$10 a tonne early commitment premium (ECP) for its AWB’s 2012-13 season wheat pools in Western Australia on Sept. 28 and South Australian and East Coast pools will close on Oct. 5.
AWB’s Richard Williams said its A$15 and A$10 a tonne premium contracts that have been offered in July and September received good support from farmers and this program is an important part of our pool management strategy.
“We have begun actively working to extract value from the market for that commitment, through early logistical planning, and managing the current market volatility in both foreign currency and wheat commodity markets,” Williams said. “We also received good support for our inaugural AWB Production Advance program which provides cash advances to farmers who commit grain to the AWB pool prior to harvest.
“The AWB Production Advance program provides eligible farmers with access to cash of up to $80 a tonne prior to harvest.”
AWB 2012-13 Wheat Pools estimated pool returns (EPRs) remain unchanged.  Benchmark grade APW2 is A$360 a tonne (FOB, excl GST) and noodle grade ANW1 at A$365 a tonne (FOB, excl GST) in the Western pool, APW1 at A$355 a tonne (FOB, excl GST) in the Eastern pool and APW1 at A$350 (FOB, excl GST) in the South Australian pool.
“Futures markets are currently under pressure as U.S. corn and soybean crops yield expectations are being revised higher across the market combined with significant selling of CBOT futures by large fund managers who held long positions,” Williams said. “Wheat market fundamentals remain very supportive for global wheat prices with Russian export offers drying up and the Australian crop under pressure due to adverse weather condition.
“However the weight of falling US corn and soybean futures markets is placing some pressure on global wheat prices in the short term.”