Pool Update 2009/10
1 July 2009
EP Grain 2009/10 pool update July Early Order Premium +PLUS offer
EP Grain today announced strong July premiums for growers through the Early Order Premium +PLUS (EOP) program across all 2009/10 pools.
The strength of the July EOP delivers notable value for growers as crop conditions start to look positive across the country. Recent rains have been very positive for the coming season and EP Grain has held its EOP unchanged for July to allow growers who may not have had the confidence in the season during June, to now commit. The guaranteed minimum price (GMP), a feature of the program from March through to June is not available for July.
Wheat
The EOP for July is $13 per mt. This is on top of the estimated pool return (EPR) of $310 per mt with a maximum cancellation fee of $18 per mt. While general global wheat markets are coming under pressure, EP Grain continues to be active in looking for opportunities to capture value for pool participants with this reflected in the EOP.
Over the last month we have seen US futures fall, while the strong AUD has remained firm, which has unfortunately weakened local values. Northern hemisphere wheat crops are looking in reasonable shape and as such markets seem comfortable with the global wheat balance sheet moving into the 2009/10 marketing year. On the physical market, international FOB values have weakened on the back of weak consumer demand as well as new export market supplies from India and Pakistan. Russian and Black Sea wheat remain plentiful. New crop production is close to arriving and has seen Black Sea marketers aggressively price old crop stocks to make room for new crop supplies which are forecast to stretch storage and port infrastructure.
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Wheat
($AUD/t)
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Barley
($AUD/t)
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Canola
($AUD/t)
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Estimated pool return (EPR)
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$315
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$245
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$570
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Early order premium
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$13
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$7
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$14
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Maximum cancellation fee
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$18
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$15
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$25
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Pool Update 2008/09
17 June 2009
EP Grain 2008/09 pool update - June
EP Grain today announced updates to its 2008/09 season estimated pool returns. Barley and canola pools are to remain unchanged however wheat estimated pool returns have been reduced following a continued appreciation of the Australian dollar.
Wheat
Following a weaker US dollar and a continued strengthening Australian dollar, all EP Grain wheat pools have been lowered by $4 per metric tonne (mt).
While demand for Australian wheat remains steady, the rising Australian dollar has meant Australia's price competitiveness has been eroded, while the weaker US dollar has assisted US wheat competitiveness, particularly against Australian wheat in higher quality wheat markets.
The moves in foreign exchange rates have also been coupled with a sharply weaker US futures market in recent weeks, resulting in a general decline in international wheat values.
While some dry weather may impact on parts of Europe, it’s not viewed as sufficient to cause major production declines across the northern hemisphere where the expectation of a good harvest remains. Other negative supply news includes India's planned entry into the wheat export market and Russia's continuing release of large volumes of milling wheat stocks on to the market.
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EP Grain 2008/09 wheat pool estimated pool return (EPR) base rate ($AUD/t) by grade delivered FOB
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Grade
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EPR
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Grade
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EPR
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H1
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$337
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ASW1
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$305
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H2
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$329
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AGP1
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$300
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AUH2
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$320
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AUW1
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$277
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APW1
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$320
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FEED
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$217
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