AWB reels from futures market hit.

Australasian Business Intelligence, April, 2007

Byline: Caroline Overington

Apr 18, 2007 (The Australian - ABIX via COMTEX) -- An increase in the global wheat price caused Australian monopoly wheat exporter AWB to incur a substantial loss on the US futures market in 2006. AWB's losses through the Chicago Board of Trade meant farmers received less for their wheat than if it had been sold on the open market. Leaked documents show AWB's futures activity involved speculative bets that wheat prices would remain low rather than its standard practice of using futures to protect itself against adverse price movements. The documents suggest AWB had hedge losses for 2005-06 of $US200.2m as of late October 2006, and $US94.7m for the 2006-07 pool. The National Party of Australia wants AWB to manage the 2007 harvest...

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