AWB Ltd has increased its new crop estimated wheat export pool returns by A$5 (US$3.65) a tonne because of good hedging opportunities and a softening Australian dollar.
This increased the estimated price range to growers for Australian Premium White to A$205 to A$215 a tonne. However prices for new season durum had dropped by A$5 a tonne to A$215 to A$225 a tonne.
AWB has left 2003/04 pool price estimates for milling wheat unchanged, apart from pasta-making durum wheat, which has been, cut by A$3 a tonne.
AWB's national pool general manager Sarah Scales said even though US wheat futures had eased in the past fortnight, AWB's national pool had captured some good recent commodity hedging opportunities.
The stronger US dollar and the subsequent weakling of the Australian dollar against the US currency had also positively influenced estimated pool returns.
The wheat market remained focused on the progress of Northern Hemisphere crops, particularly the US corn crop currently being planted, but the fundamentals behind the markets for durum and bread-making wheat remained vastly different, she said.
"While we are still looking at a tight global stocks situation for bread wheat, the production outlook for durum wheat has lifted, with large crops expected in key durum areas of Europe and North Africa," Scales said.
"At the same time demand for old crop durum has also flattened, and this is reflected in the reduction of old season durum estimates," she said.