MELBOURNE, AUSTRALIA — The Australian Wheat Board’s (AWB) Estimated Pool Returns (EPRs) for the 2011-12 AWB Wheat Pools remain unchanged as U.S. wheat futures, AWB said on Aug. 16

AWB’s 2011-12 EPRs for 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).  

“U.S. wheat futures declined heavily over the past week as the U.S. Department of Agriculture’s monthly commodity report confirmed market expectations in terms of corn and bean yields and produced balance sheets with workable carry outs, resulting in heavily selling off wheat futures,” said AWB’s Richard Williams. “Fundamentally, corn remains in an environment where a significant amount of demand rationing needs to occur, and most in the market believe this has not yet been achieved at today’s values. 

“Wheat prices have fallen relative to corn over the last week to the point where feed grains values should provide some support going forward. Globally, the wheat balance sheet remains tight. However, Russia continues to export significant volumes, which is placing pressure on global wheat values. Australian wheat cash values have come under pressure in line with the fall in U.S. futures. However, they remain relatively expensive on a global comparison. The international market ultimately needs Australian wheat, but it’s all in the timing. And despite smaller Black Sea crops, wheat is being exported from Russia at a rapid pace in the key harvest period. The Australian dollar continues to strengthen, as it is benefiting from Australian high interest rates, compared to our global competitors, and reduced volatility in the global macro-financial environment.”