Australian Wheat Board Maintains Optimism

DONALD -- Apr 6/99 -- The long term outlook for pool prices continues to be positive despite seasonal market volatility, with the result the latest pool return estimates are unchanged from March.

Australian Wheat Board (International) Limited General Manager Ted Laskie said this reflects the fact pool prices are largely insulated from short term market fluctuations.

"Northern Hemisphere crop conditions continue to look good and exports have been relatively slow outside of US aid programs. As we have been saying for a number of weeks, late March and April is a volatile time for prices and this was clearly demonstrated last week," Mr Laskie said.

"AWB operates an active currency, hedging and futures program and the pool is reasonably insulated from the volatility that has appeared in the market. Also keeping our outlook positive is our forward shipping program which is full for March, April and May."

However the outlook for durum remains less certain following this week's USDA forecast of higher plantings for 1999 and large world durum stocks pushing the market for durum down further.

"This is reflected in todays drop in price in all durum pools," Mr Laskie said.

*Feed and Feed 2 categories remain open

Pool return estimates for the National 1998/99 No. 2

pools