Dear AACL Grower,

Welcome to Issue 20 of AACL's Grain Co-Production Updates - the first issue for 2012.

GRAIN MARKETING UPDATE

Tonight the USDA will release its latest report on the supply demand picture for world grains.  The January report is generally seen as an important sign-post for where the world grain market is situated - and this year is no exception. 

2011 SEASON POOL ESTIMATES

Within this current grain marketing context AACL has made only a few changes to the Pool Estimates as per the table below. 

Barley has strengthened slightly on the east and west coasts however there is still no significant premium for malt grades.  The canola market is looking softer with weakness in the world soybean market.  For wheat, the big mover is changes in grade spreads with discounts being reduced - particularly in WA as merchants bid up for grain to meet shipping slots due to farmers delaying selling to maximise Quality Optimisation opportunities.

AACL grade spreads will be reviewed latter in the season prior to the next distribution in April.

Estimates for all Port Zones can be found here or under Farmer Downloads on the AACL website,  www.aacl.com.au/farmer-centre/

Please note: Pool Estimates are $AU/t FOB for APW, Feed Barley and base Canola only and provides growers with AACL's and Glencore Grain's view of the Pool Estimates at that time.

HARVEST DISTRIBUTIONS

There is no change to the Harvest Distribution value since the previous Update. 
As advised, all performance payments will be calculated such that the net delivered value is based on 70% of the gross value of delivered grain less 100% of the estimated costs.

Where the net delivered value calculated is less than the Seeding Payment, there will be no Performance Payment at the first Distribution following the receipt of a Harvest Declaration.

Where the calculated net delivered value exceeds either the Seeding Payment or the Target Value there will be Performance Payments at the first Distribution (subject to deductions for seed retained, or other recoveries etc).

The same method will be used for future distributions at the end of April and at finalisation of the Pool.

If you have any questions regarding this calculation please contact Grower Services or your Area Manager.

Full grade spreads are available via this link or under Farmer Downloads on the AACL website, www.aacl.com.au/farmer-centre/

CONTACT US

If you have any questions please contact AACL Grower Services on 13 000 GRAIN (47246).

Peter McEwen
CHIEF EXECUTIVE OFFICER
AACL Pty Ltd