MELBOURNE, AUSTRALIA — The Australian Wheat Board (AWB) announced on Dec. 10 that the vast majority of the AWB 2013-14 Wheat Harvest Pool Estimated Pool Returns (EPRs) have increased.  

“Australian wheat prices have strengthened on the back of good domestic and export interest,” said Head of Trading and Risk Management Josh Martin.  “A small Australian wheat carry over from the 2012-13 season has also meant pipelines into domestic export channels are being replenished, resulting in good demand.”

Benchmark grade APW2 EPR is now A$314 a tonne (FOB, excl GST) and noodle grade ANW1 is A$347 a tonne (FOB, excl GST) in the Western pool, APW1 is A$318 a tonne (FOB, excl GST) in the Eastern pool and APW1 is A$304 (FOB, excl GST) in the South Australian pool.  

“The Australian wheat harvest continues to progress well across all regions with harvest over 70% complete and the quality profile continues to deliver a low to mid protein crop,” Martin said. “Global supply issues have lessened as the Australian crop is moving through harvest, leaving no major international supply concerns at this point. 

“The AWB harvest pool will be aiming to capture value longer term with current local and global wheat prices mostly flat when looking at forward prices.  However history tells us wheat prices can rally significantly should production issues arise in northern hemisphere crops from March onwards.

“While wheat markets remain well balanced for the remainder of the year, prices will also be impacted positively from any sign of increased demand from China or the Middle-East.

“While many farmers are selling part of their crop for cash due to the solid prices during harvest, they should also consider selling some of their crop through AWB Pools and utilizing one of the many competitive finance options (loan interest rate 5.1%) or using a deferred payment product to manage their cash flow.”