GrainCorp pool manager, Ole Houe, says the company will provide pools and other financial products as part of its response to the removal of the wheat export monopoly.

"Our 'guideline EPR' [estimated pool return] for a 2008/09 wheat pool in New South Wales and Victoria is $A380 to $400/t (Free On Board)," Mr Houe said.

"We will also be running a pool in Western Australia and South Australia; the guideline EPR for that pool is $360-$380/t FOB."

Mr Houe noted the recent volatility of the world wheat market, in which prices have dropped by $50-60/t over the past month as the Northern Hemisphere crop prospects have improved.

"We expect to see volatility to remain over the next few months," Mr Houe said.

"While conditions are looking favourable in most of the northern hemisphere, there is a concern over dry conditions in some wheat growing countries.

"Wet conditions in some areas of the US are hindering corn planting. This has driven a short term increase in the price of corn compared to wheat, to a point where we are not far from seeing wheat replacing corn in some feed rations.

"If this trend continues, it will tighten up the world wheat balance sheet."

Mr Houe said another factor causing uncertainty in the market is the desire by some major wheat consumers to increase their wheat reserves.

"This would be generally supportive for prices, and could well drive price spikes if we see wheat production problems emerge anywhere," he said.

Meanwhile, AWB has today announced its pools are unchanged since its last update, with the 2007/08 EPR for benchmark APW grade for the AWB Number 1 National Pool at $418/t (FOB GST exclusive), the Number 2 National Pool APW at $399/t and the Number 3 National Pool APW remains at $350/t.

And ABB Grain has announced its first distribution payments will shortly be heading to wheat growers around Australia, who participated in its cashflow pool in the last harvest.

The first distribution from this pool consists of approximately $500,000 of direct payment to growers after deductions.

The first distribution is comprised of 20pc of the estimated FOB price and will have 100pc of estimated port and storage charges applied along with 20pc of estimated freight.

Growers also will receive 20pc of their increment payments.

The next grower distribution payments are scheduled for July.