Feed Barley in AU

[TOM4CWB]

Mallee,

I hear that feed barley is being contracted at $160/t for Dec 07 in Australia.

Who is offering this, what kind of terms, is this a price you would contract at?

What prices are being offered for Malt Barley?

In what states does the "single desk" on barley still exist?

[malleefarmer]

Tom that is correct $160 au dollars on farm.
As of next week when parliment resumes changes will be made to the single desk in south Aust which will in fact be full deregulation so no states in aust have a single desk. If not next week it happen shortly.

who is offering prices well at the minute the aust barley board is the top price and traders ie cargills,louis dreyfuss are only a dollar or two of the pace. But it changes daily. When the market deregulates in SA i suspect there will be be a flurry of buyers are prices will move up a notch.

Malt is $182 on farm.

Barley could be a bit of sleeper in regards to prices at the minute ie more upside.

Old season feed barley is selling at $250 to 260 on farm but thats a drought induced premium.

Wheat for new seasons dec 07 is around the $210. Plus increments

Pockets of rain all over aust in last three weeks just waiting for the big drought breaker to fill in all the gaps.

[agstar77]

Is it true that in recent meetings , the majority of farmers in Australia wish to retain the single desk for export sales ,while divesting AWB of all other responsibilities?

[charliep]

To follow up on agstar77 question, are Aussie farmers asking to have the domestic processing industry marketings put back under single desk? Have maltsters (in this case) developed innovative and mutually beneficial contracts (perhaps moving to more of a supply chain arrangement)? How does Australia handle research/development, market development and customer service needs?

[agstar77]

This report was carried on Reuters, and goes on to say that Australia's main farm body wishes to retain the export monopoly although AWB ltd. would not be part of the process. Perhaps Mallee could epand on the sentiment.

[malleefarmer]

Agstar, the peak farm bodys in aust are grains council and NFF.
Grains council has state branches and between the states some sort of resolution is thrashed out at state level, then the states agree then a national model will be put foward.
Thusfar south aust has put foward a model for wheat which is like barley full deregualation and the west australians are leaning that way.
Other states want what weve got but with changes.

Meetings held around australia WA wants full deregualtion and other states want from no change to full deregualtion. Very simialr to you barley argument. As you guys know wheat is fully deregulated in domestic market and at present single desk is there for export but liscences are issued by federal minister for Ag but AWB get the lions share many think this is the system to have.

Some change is inevitable.

as with the changes to barley here in SA there was report after report done and economists studying the single desk premiums etc etc before our barley market was deregulated and the main message in review was
"NO ONE WILL BE DISADVANTAGED THROUGH DEREGULATION AND FARMERS WILL HAVE CHOICE"

The aust barley board took it all on the chin and really didnt complain at all whilst dissapointed im sure but they knew it was inevitable, and they will still get probably only a slightly decreased tonnage of grain be it loyalty, or fear of the unknown from farmers not willing to sell to traders, or maybe they will have the best prices who knows and of course they will still run pools as will other companies but its bussiness as usual for the abb, single desk supporters and all the rest of us, the sky hasnt fallen in.......

[agstar77]

Thanks for the explanation.