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 The desk is gone ... wheat's new world is here 

The desk is gone ... wheat's new world is here

09 Jul, 2008 03:21 PM
FROM the 21st floor of AWB headquarters in Melbourne, Gordon Davis showed not the slightest hint of mourning the loss of the single desk last week.

If anything the boss of AWB is pumped about wheat's "new world", his company's role in it and the marketing options he believes will germinate from this fresh field.

Asked what growers can expect to change this harvest and he says the short answer is "everything".

"I personally feel we'll see a lot of innovation in the market – you'll see a range of offers that didn't fit within the framework of the national pool," Mr Davis said.

But with innovation will come uncertainty – and he stressed growers did not have the luxury of taking 12 months to adapt.

* Extract from full report in this week's The Land and Stock & Land, July 10 issues.

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Date: Newest first | Oldest first
The loss of the Single Desk will be of enormous detriment of farmers and Australia generally. It shall expose our graingrowers to the inadequacies and whimsical price fluctuations in Boston which can easilly be manipulated against Australian growers. The loss of the desk removes stability in the market and totally works in favour of giant corporate properties and will cause a huge reduction in smaller family farms already under enormous pressure.

To put it simply, the loss of the Single Desk is no different to shooting oneself in the foot!

Posted by CQ, 10/07/2008 7:43:51 AM
The loss of the Single Desk will be of enormous detriment of farmers and Australia generally.

It will expose our graingrowers to the inadequcies and whimsical price fluctuations in Chicago and Boston which can easilly be manipulated against Australian growers.

The loss of the desk removes stability in the market and totally works in favour of giant corporate properties and will cause a huge reduction in smaller family farms already under enormous pressure.

To put it simply, the loss of the Single Desk is no different to shooting oneself in the foot!

Posted by CQ, 10/07/2008 7:44:11 AM
The days of peasant farming are over, CQ. So is socialist market interference. It's time to join the real world and compete. If you can't do that, get out of the way.
Posted by No Socialism, 10/07/2008 10:55:06 AM
If CQ doesn't understand basic market forces such as demand & supply, not mentioning that Chicago is the main wheat exchange, then he'd be better off selling up and putting his money on term deposit. At least he won't be exposed to the whimiscal price flucuations in Boston.
Posted by real world, 10/07/2008 4:12:23 PM
It's an exciting prospect...finally having complete freedom of choice in marketing your own crop. Pound for pound, the farmer will gain more from deregulation than anyone else.
Posted by free market man, 10/07/2008 6:36:51 PM
A fantastic move for Australia and open world markets. Australia has the knowledge, technology, and ambitions to create a profitable crop. Any feelings and concerns about whimsical price fluctuations in Boston indicate that this may not be the industry for CQ or other like-minded individuals; but it clearly gives other aggressive and smart individuals an opportunity to hedge against the highs in Chicago and largely improve profitability and cash flow.
Posted by CAnderson, 11/07/2008 2:20:51 AM
Finally we can take full advantage of the pricing opportunities available to most producers in the developed and major agricultural developing nations. Some may see "whimsical" price fluctuations in exchange boards, while others see opportunities to hit high prices with the volatility associated with a market that is continuously inundated with news. Recall days of stagnant market movement - many called for volatility and now we have it. You can reach for the highs if movement is flat. For those concerned with high volatility - educate oneself about market forces and market players and better understand volatility.
Posted by Nelly, 11/07/2008 6:47:59 AM
The enormous discounts and price instability of the new world of wheat marketing just falls into the lap of corporate grain traders at the expense of average farmers. For farmers now, the only option to get a decent price at harvest is to forward sell and hedge.

Forward selling and hedging a crop you haven't harvested is just horse racing, eventually you will discover that heads you lose, tails you can't win. The long term prospects for Oz growers now are the same as South African wheat growers in 01, a smaller disintegrating industry.

Posted by Hunger, the new world order., 13/07/2008 4:30:31 PM
Grain shortages are temporary, suplus is common. Discipline will always beat the mob. Divide & conquor I say, corporates take all. Time will be cruel. Welcolm to peasant farming.
Posted by nz farmer, 13/07/2008 6:27:29 PM
Are you fools? Do you know how much the AWB put it its pocket? Do you know with a (grain) pool, the grower has 100pc price risk?? Not the pool provider. Deregulation will bring the market into reality. Smart farmers will excel.

More buyers = more options, more competition = better prices. Everything revolves around supply and demand.

And populations are increasing - arrable land is not.

If you think the AWB protected you, you should sell up now.

Posted by trader, 15/07/2008 3:24:21 AM
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AWB chief executive Gordan Davis.
AWB chief executive Gordan Davis.
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