Small Cuts in Australian Wheat Pool Outlook

DONALD - Mar 4/02 - STAT -- The Australian Wheat Board (AWBI) made some minor cuts to its projected returns for this year's pools against the realization wheat production levels will likely rise this year.

AWBI General Manager Sarah Scales said, "While recent world demand has been lackluster, there is a growing realization that production is likely to increase in major exporting countries this year which is expected to make for a more competitive world wheat trade."

Prime Hard has been reduced by A$1.50 to $271 per metric ton (MT) (FOB, GST exclusive), Australian Hard by $1 MT to $258, Feed is down $3 MT to $174 MT while ADR1 is down $5 to $341 MT, with reductions also to protein premiums. There have been no changes to benchmark APW, which remains at $247 MT.

Scales said this week's decrease in the base rates, and Golden Rewards premiums, for APH and AH reflected the continuing narrowing of international premiums for higher protein wheat.

"Feed wheat prices have dropped due to increased wheat exports from India and China, as well as competition from Chinese corn, while the reduction for ADR1 reflects the steady easing of world durum markets," Scales said.

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