Another AWB scandal...

[Fransisco]

AWB in Trouble Again

Two public servants in India have been arrested as part of an
investigation into the corruption of Australia's $300 million wheat
trade with India. The two men, former head of India's State Trading
Corporation, S M Deewan, and middleman Hari S Nanda, were arrested
after raids on six properties across the country last week.

The investigation centres on India's purchase of two million tonnes
of wheat from the Australian Wheat Board (AWB) in 1998, at what Indian
authorities say were exorbitant prices and despite India not needing
supplies at the time.

As part of the contract, AWB agreed to pay a US $2.5 million
commission into a Cayman Islands bank account, which is the focus of
the Indian investigation. Two other men are also being investigated
over the payment.

India's Central Bureau of Investigation wanted to pursue the scandal
in 2001, 2004 and 2006, but each time was thwarted by the Australian
government's lack of assistance. This time however, Home Affairs
Minister Bob Debus instructed the Australian Federal Police (AFP) to
fully cooperate with Indian authorities.

The Indian investigation is the latest scandal to involve the AWB,
which in 2005 was found to have corrupted the UN Oil for Food program
in Iraq.

[parsley]

Here are a three quotes from Malcolm Bartholomaeus, the Managing Director of the Callum Downs Commodity News letter, written on the 22 of July.

These are his opinions:

#1 "Old Season Wheat I certainly would not be holding old season wheat any longer. I would be selling it to Elders as quickly as I could tomorrow morning."


#2 "Probably the next big decision about marketing canola will be whether to price the rest of the crop off the header, or whether to wait for a while.
So, what is driving the price down? A combination of things

• The weather premium on US prices for corn and soybeans has gone now that the season has settled down and current conditions are seen as favourable for the crop.

• Crude oil has come back, removing support for corn and soybeans that were overpriced anyway in terms of
biofuel production.

• Demand for corn and soybeans has just pulled back a little.

• The tax situation in Argentina has been resolved with their parliament rejecting the proposed export tax,
opening up exports from Argentina again."


#3 "To me the current season in Australia remains supportive of the current global wheat balance sheet, but does not contribute to any further increase in the forecast surplus. Any dip down in our yield potential will put pressure on global wheat supplies."

Parsley