AWB provides a $10/t Adjustment PREMIUM

[TOM4CWB]

Lee and Chaffmeister,

I got this off my BASF Larry Weber report this morning:

I can't think of better words to describe the lack of market orientation... and true depreciation the CWB brings to the "Designated Area" grain grower!

"Australia ’s Adjustment Factor:

Australian wheat exporter AWB Ltd is offering an incentive of A$10 a metric ton to growers who commit their new crop production to it before Oct. 31. The company aims to accumulate tonnage for sale at high expected prices around the end of the year, spokesman Peter McBride said Thursday. (AWB) What a novel concept - attract grain with a premium rather than an adjustment factor discount."

[melvill]

Doesn't supprise me, tom4cwb. Kinda reminds me of what Canadian malsters did not so long ago to attract barley supplies. The Aussie question remains whether or not the crop will be big enough to fill those opportunities. If conditions aren't very good, will Aussie producers be willing to make that commitment before harvest is very far along. Typical Aussie wheat harvest is Nov-Dec-Jan.