Wheat Price Outlook Sours

SYDNEY - Mar 31/03 - SNS -- Optimism about crop prospects in the United States put additional pressure on international wheat prices during the past few weeks, forcing the Australian Wheat Board (AWB) to lower its Estimated Pool Returns (EPRs) for the 2002 AWB National Pools.

The movements in the wheat market have prompted a $5 per metric ton (MT) reduction in No.1 2002 pool EPRs and a corresponding $10 MT reduction in No.2 2002 pool EPRs. This leaves benchmark APW pay grade at $253 MT (FOB, GST exclusive) for No.1 2002 AWB National Pool.

The market conditions have also prompted a reduction in the new season forecast, with the estimated APW pay grade range for the 2003 AWB National Pool down $10 MT, to $195 - $205 MT.

General Manager AWB National Pools, Sarah Scales said US futures had been impacted during the past fortnight by a general lack of export demand and slow export pace from the US.

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