CONTINUING concern about European wheat production has prompted AWB Limited to lift its estimate of east Australian wheat pools by $12-$22 a tonne.
The Australian Premium White wheat pool is now forecast to return $345 a tonne, FOB.
It is the third month in a row that AWB has increased its pool outlook, largely due to drought in Russia, Kazakhstan and the Ukraine, plus other weather-related problems in western Europe.
AWB commodity general manager Mitch Morison said the upward trend in prices was positive news for Australian growers.
"Notwithstanding the unfortunate people suffering from localised flooding in some areas, it’s a great start to the spring growth period and the timing couldn’t have been much better from the market’s perspective," Mr Morison said.
"The market is aware that weather damage in northern Europe has reduced the supply of higher quality milling wheat in that region and drought has cut crops in Russia, Ukraine and Kazakhstan to the point that exports through the Black Sea will be very limited.
"This means there is very strong interest for Australian wheat, both to make up for the lost volume in the global trade and supply higher quality needs.
"The interest is helping to generate better physical prices for Australian wheat on top of the general improvement in world prices, so we are in a strong position talking to customers about shipments both in bulk and containers."
The pool increase comes as reports from Russia indicate the Russian Government may restrict exports of wheat out of the country until after harvest next year – much longer than first anticipated.
