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 Further $9/tonne available on advance from AWB 

Further $9/tonne available on advance from AWB

31 Oct, 2009 04:00 AM
GROWERS who utilised AWB’s harvest finance for their 2008/09 wheat pool deliveries will have access to a $33 million top-up payment made on Wednesday night.

The top-up means that harvest clients will have access to an average of 93pc of the current estimated pool return.

This latest payment equates to around an extra $9/t in credit limits for those using the harvest loan product, with top-up amounts varying on grade, pool chosen and the finance product selected.

The top-up applies to all grades in AWB’s eastern and western pools.

AWB general manager of commodities Mitch Morison said the top-up was made in light of a strong domestic and international sales program.

“Export sales have targetted key customers in Japan, South Korea, Indonesia, Malaysia, Sudan, Egypt, Yemen and the Pacific Island markets.”

He said the 2008-09 pool had held up well in light of declining world grain prices.

“In the face of rapidly declining world wheat prices this year and the stronger Australian currency, our 2008/09 EPR has declined just $2 a tonne since our last top-up payment in May, so our commodity hedging and currency management have performed well.”

Mr Morison was similarly upbeat on new crop prospects.

“As we move into the next harvest, AWB has made a strong start to management of this year’s pools through our early commitment program, with sales, commodity hedging and currency management already occurring,” he said.

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