AWB Limited - 2004 Annual Report

31. FINANCIAL INSTRUMENTS (continued)
(b) Foreign exchange risk (continued)
Consolidated
2004 2003 2004 2003
Currency options Weighted average strike rate $'000 $'000
Not later than one year
Buy Australian dollar Call, US dollar Put 0.7345 0.6729 56,445 60,108
Buy Australian dollar Put, US dollar Call 0.6914 0.6460 (14,514) (18,075)
Sell Australian dollar Call, US dollar Put 0.7481 0.6779 (33,720) (38,967)
Sell Australian dollar Put, US dollar Call 0.6804 0.6380 37,119 39,892
Total 45,330 42,958
The net deferred costs and exchange gains and losses on foreign exchange hedges of anticipated foreign currency sales and purchases recognised in
the statement of financial position and the timing of their anticipated recognition as part of sales and purchases are:
Consolidated
Net deferred gains/(losses)
2004 2003
$'000 $'000
Not later than one year (1,655) 2,117
Later than one year but not later than two years 83 –
(1,572) 2,117
The consolidated entity enters into foreign exchange transactions with external counterparties on behalf of AWB (International) Limited. For all
such deals a back to back transaction is entered into with AWB (International) Limited.
The following table sets out the gross value to be settled under foreign currency contracts, the weighted average exchange rates and the settlement
periods of outstanding contracts in the consolidated entity on behalf of AWB (International) Limited. All amounts are stated at the Australian dollar
equivalent.
Consolidated
2004 2003 2004 2003
Forward exchange contracts: Weighted average rate $'000 $'000
Settlement not later than one year
Buy US dollars, Sell Australian dollars – 0.6462 – 160,392
Sell US dollars, Buy Australian dollars 0.6977 0.6404 (1,301,580) (1,639,580)
Buy US dollars, Sell euro 1.2330 1.1254 9,254 349,642
Sell US dollars, Buy euro – 1.1180 – (11,511)
Buy euro, Sell US dollars – 1.1180 – 11,968
Sell euro, Buy US dollars 1.2330 1.1254 (9,306) (361,218)
Total not later than one year (1,301,632) (1,490,307)
Settlement later than one year but not later than two years
Sell US dollars, Buy Australian dollars 0.6809 – (149,856) –
Total later than one year but not later than two years (149,856) –
Total (1,451,488) (1,490,307)
93