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Grain prices set to come back

04 Aug, 2008 11:59 AM
Grain growers should not bank on the historic high prices for Australian grain continuing, according to ABB managing director Michael Iwaniw.

Speaking at a Rural Media luncheon in Adelaide on Friday Mr Iwaniw said with a strong Northern hemisphere crop and the availability of capital becoming scarce grain companies would be hard pressed to offer top dollar.

"Stories of people buying the whole Australian crop or even half the crop are impossible because none of the grain companies including ABB have the balance sheets to do it," he said.

Mr Iwaniw said with deregulation, the risk with grain prices that was carried by ABB or AWB in the past was now carried by growers.

"In average or above average years I think we'll see a dramatic change in grain prices," he said.

* Extract from a full report in Stock Journal, August 7 issue.

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comments


Date: Newest first | Oldest first
Thanks Michael - just as I thought but it will not worry you and your fellow traders - as long as you and your lot get a commission off a workable through put. Thanks a million for defending growers and their marketing rights contained in the wheat single desk. Unfortuneately Michael you will have to live with your conscience because you know the score and what is in store for growers to the tee.
Posted by Jock, 4/08/2008 6:39:33 PM
Thankyou Michael Iwaniw it's great to see people out there talking the grain market down. ABB should be ashamed of themselves for talking down the price prospects of their client's. Or should we just call grower's suppliers or a link in ABB’s business chain? ABB has been the dinosaur of the Australian grain industry and comments like these should be seen as an opinion as that is all they are. The Media need to realise that many of the previously grower focused organizations do not have grain growers at the forefront of their loyalties in the new grain marketing environment and therefore the media, including this publication, need to show more discretion as to who you give a voice to. Any market is partly made up by sentiment and the last thing I want to see as a grain grower is someone who purports to be involved in my business to be talking down the price prospects. As for my business I will be avoiding dealing with the ABBs of the world and instead look for companies that support growers.
Posted by Graingrower, 5/08/2008 8:31:07 AM
I find it amusing that the single desk flat earth society has so much time on there hands to keep flogging a dead horse. Do any of these dinosaurs grow any grain? Judging by the marginal areas, dated farming practices and lack of crop in which many of the single deskers reside, i don't think so. It seems that the internet is the only place left as the rural newspapers are sick of the same few writing the same repetitive letters attacking anyone who doesnt think the wheat industry willl collapse with the single desk gone.
Posted by Young grower, 9/08/2008 7:05:05 PM

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ABB managing director Michael Iwaniw.
ABB managing director Michael Iwaniw.
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