Iraq Wants More Wheat Supply Agreement With Australia

[SASKFARMER3]

Iraq Wants More Wheat Supply Agreement With Australia. Seems that Iraq is looking for a long term stable agreement with Australia to supply wheat. My Question is where the heck is the CWB and our so called perfect system. HM its maybe not so perfect.

[agstar77]

What has changed in Iraq? Same old people looking for kickbacks . Who do you know that plays that game? Your old buddies the Aussies.

[bucket]

Maybe it makes more sense to buy the market than give the money to MGEX and american traders to cover the cwb shorts and send the losses to the canadian farmers.

Sure kickbacks are not wise but neither are the trading losses the cwb incurred. Both are immoral. The AWB was punish for their role in it. What will happen to the cwb traders for their actions?

Farmers gained in the aussie situation.

[Fransisco]

What will happen? They will continue to get fat paycheques and fat bonuses and agstar will continue to say they are well deserved because the wheat board can do no wrong.

[malleefarmer]

probably more to with logistics of frieght and they prefer a certain type of wheat with tight specs

you may have seen that in west aust the barley market there is finally deregulated,much to the joy of farmers.

so that leaves nothing in aust under control of a monopoly and would seem that you guys in canada have the "last" single desk in the world, hope you enjoy the premiums and benifits that it will bring.......

[charliep]

One question I would always ask before I complained about loosing on a sale to a country like Iraq is what the price would be in a farmers pocket/a local elevator bid. I would always hope that all sales decisions are based on this criteria.

If the CWB were making sales to Iraq (perhaps in competition with the Aussie, US, perhaps eastern and western Europe), I would like to know the value basis port. With single desk/the CWB ability to price differentiate (sell the same wheat in alternative markets for different prices on the same day), Canada may actually have an extremely low price basis one of our ports to be competitive. That is, price differentiation works both ways and can actually result in selling wheat in a market like Iraq for well below the value of that wheat in the domestic market.

Moral - Before I cry about missing a sale, I want to know price. A wheat supply agreement is good but in the new world in Australia, the grain trade will have to compete for deliveries to complete these transactions.

[classicalliberal]

CWB doesn't give a crap about price because nothing motivates them since they confiscate the grain. They just want to move it so that the farmers are grain companies aren't on their backs about not moving it. Isn't a monopoly supposed to tell the consumers what the price is? Oh yeah, the CWB doesn't have a monopoly.

[malleefarmer]

was privy to some tender prices a few years back when the hurly burly of the single desk arguments was in full flight.

anyway some tender forms and prices from top to bottom some how came into my possesion.

was an interesting read and monopoly marketers quite often won the tenders not because of market power but lowest prices, but could offer other advantages in frieght and blending etc which made it more appeasing to the buyer.

problem seems the additional "profits" from value adding shall we call it ended up in the coffer of the company not farmers

i cant and wont name anything or anyone for legal reasons.

ps if you look hard enough on the internet you can find tender prices from time to time, wether they are bogus or not who knows

[TOM4CWB]

Mallee,

With a well run risk management system.... basis is established... not the final pricing till delivery.

Iraq is doing the business... cause they think this is an opportune time to buy wheat... kind of like growers trying to buy Fert. at the bottom of the market.

There is more than just the cash market as a tool to attain profitable prices for growers... a good chunk of hedges can extract a different kind of premium! Ausies understand this. US Grainco's also understand this principal.

The CWB isn't allowed to 'distort' the market... because the probono reason for the 'single desk' is for the domestic Ag industries that buy grain... instead of the 'designated area' grain growers the 'single desk' exploits.

[classicalliberal]

YEs, it is obvious that those public servants at the CWB don't know how to use the futures market as the march 2007 wheat futures squeeze shows. Again I hear that attitude that all money and profit should be given back to the farmer, why do people insist that we are the chosen group and that we deserve profits while everyone else should do everything for us at cost?