Australia's AWB optimistic on wheat export prospects

SYDNEY Aug 28 (Reuters) - AWB Ltd AWB.AX, which was stripped of its monopoly on Australian wheat exports this year, said on Thursday it still hopes to make bulk wheat exports despite not yet winning accreditation under a new export system.

AWB, which lost its export monoply after a scandal over illicit payments to the former Iraqi regime of Saddam Hussein, has applied to the government's new export regulator, Wheat Exports Australia (WEA), but was not among the first five companies to win accreditation this week.

"We applied a couple of weeks ago so we are just waiting to hear back," said AWB spokesman Peter McBride.

WEA on Tuesday said it had accredited Cargill Australia Ltd, Elders Toepfer Grain Pty Ltd, Goodman Fielder Consumer Foods Pty Ltd, Grain Pool Pty Ltd and OzEpulse Pty Ltd, to export bulk wheat under the government's new arrangements for trade.

Harvesting of the first wheat to be sold under the new arrangements is just getting under way in the northeast state of Queensland.

Private consultancy Australian Crop Forecasters expects to cut its forecast for the country's wheat crop to between 22.5 and 23 million tonnes, from an earlier forecast of 24.05 million tonnes, due to a lack of rain in August. [ID:nSYU005024]

Australia is hoping to bounce back to more normal levels of wheat production this season after drought cut crops in the past two years. The last crop amounted to 13.04 million tonnes while the 2006/07 crop amounted to 10.82 million tonnes.

AWB expects the regulator to approve between 20 and 40 companies, McBride said, including existing Australian grain bulk handlers, such as GrainCorp Ltd (GNC.AX) and ABB Grain Ltd ABB.AX, as well as marketers such as AWB.

He said international grain traders and smaller niche players were also likely to gain accreditation.

Cargill Australia is a unit of U.S. based global commodities trader Cargill Inc [CARG.UL] while Elders Toepfer is a joint venture between German commodities trader Toepfer International and Elders, which is owned by Australian-listed Futuris Corp Ltd FCL.AX.

Goodman Fielder Consumer Foods is a unit of Australian listed baking group, Goodman Fielder Ltd (GFF.AX), while Grain Pool is a unit of unlisted Western Australian grain handler Cooperative Bulk Handling Ltd. OzEpulse is a Sydney-based exporter of grains to niche markets.

WEA acting chief executive Peter Woods said there was no limit on the number of organisations that could apply for accreditation.

He declined to say how many applications had been received but said they were still being received.

"Every application is considered on its merits," said Woods. (Editing by Ben Tan)