Thoughts?

[silverback]

Collapse of Aussie Single Desk Creates Opportunities
Written by AM 1250/ Mix 96 FM News
Thursday, 27 August 2009
The deregulation of the single desk system in Australia has led to increased marketing opportunities for the Canadian Wheat Board. Rick Steinke, Director of Logistics with the CWB, recently returned from a trip down under. He says the grain handling system in Australia is in a state disarray. Australian farmers have seen depressed prices and have had a hard time getting grain to international buyers. Earlier this year, the CWB shifted its focus away from customers of Australian grain as prices were lower in that part of the world. However, now those Pacific market customers are coming back to the CWB as the Australians have been unable meet their end of the contracts. Steinke points to one producer he met who is struggling to get his 250, 000 tonnes of high quality wheat to port. This producer is trying to market the grain himself but has run into a wall of logistical challenges, while also seeing his wheat undersold by neighbouring farmers. Steinke says there's no doubt the lack of organization in Australia has already led to increased opportunities for the CWB. He says the Australians are now trying to bring back increased regulation to their system to re-align capacity with market realities.

[silverback]

Sorry, that is from SteinbachOnline.com

[Fransisco]

My first thought is doesn't this count as promoting the "single desk" which the appeal court ruled was outside of the wheatboards mandate.

[silverback]

I wonder if Malee knows who this "producer" is who has 9.2 million bushels of wheat that can't get to port?

Maybe Malee is one of those evil neighbors who is trying to undersell this poor little farmer.

[LWeber]

Ron Greentree

[Fransisco]

Second thought is that I read somewhere that yes the CWB got a bit of the Aussie's action in the past year. But it's not a permanent thing and has nothing to do with single desks.

[Fransisco]

Aug. 3 (Bloomberg) -- GrainCorp Ltd., eastern Australia’s largest grain handler, raised its 2009 profit forecast for a second time driven by <b>higher-than-expected deliveries to and exports from its port terminals.

“The removal of the bulk wheat export monopoly has encouraged more competition in the Australian wheat market and is driving a more robust export program,” Managing Director Mark Irwin said in the statement.</b>

The prospects for Australia’s current winter grain crop are good, the company said.

The company first raised its full-year profit forecast in May, citing higher grain deliveries and exports.

To contact the reporter on this story: Madelene Pearson in Melbourne on mpearson1@bloomberg.net

Last Updated: August 3, 2009 02:45 EDT

[charliep]

Actually there is nothing in the 2008/09 numbers to indicate the CWB got any of the Aussie action in the big picture. Australia returned to normal export volumes after a period of struggle due to drought.

[Fransisco]

Then there's this

"THE Nationals have scrapped one of their "sacred cows" - support for the single desk for wheat exports"

Would the Natinals be like our NDP or the Liberals?

[Fransisco]

And if things are supposedly so tough exporting Aussie wheat then how come...

Aug. 25 (Bloomberg) -- Wilmar International Ltd., the world’s biggest palm oil trader, and The Gavilon Group LLC bought a port facility in Brisbane, Australia to ship grain and other commodities.

The purchase of the Brisbane sugar terminal is due to settle on Sept. 21, according to a statement today from Wilmar Gavilon Pty, a venture between Singapore-based Wilmar and Omaha, Nebraska-based Gavilon. Construction and upgrades at the site will begin in October, the venture said in the statement, without giving financial figures.

Australia last year scrapped its monopoly selling system for wheat exports, opening the market to international groups. The nation is the world’s fourth-largest wheat exporter and third- largest canola shipper.

“The expansion of our operations into Australia’s port system represents an important investment in our long-term growth strategy,” Scott Weitemeyer, managing director of Wilmar Gavilon, said in the statement distributed by Business Wire. “The site is expected to begin handling grain exports early in 2010.”

The Brisbane sugar terminal features a private berth, a 100,000-metric ton dry storage shed, covered truck receiving station and a ship loader, the venture said in the statement. It was constructed in 1985.

[Zaphod]

The only problem in Australia was the speed of the deregulation. You simply can't make the shift that quickly. Give them another year and all the wrinkles will be ironed out.

[parsley]

Perfect point Zaph.

[craig]

comments from the board are as normal. Not neccesarily the truth but purposely designed to instill fear in canadian producers. Remember how we had canadian NFU members go to Australia and tell everyone how bad GM canola has been for Canada. This forray to Australia is no different than the board hiring a friend to do a study where the conclusions are already known prior to writing the report.

[malleefarmer]

Current cash prices port
Subtract $18 for rough average on farm price for apw wheat our "standard wheat"
$217.00 $213.00 $219.00 $221.00 $213.00 ABB $10 $8 ]$8 ]$25
AWB $226.00 $219.00 $228.00 $232.00 $232.00 AWB $12 $8 ]$12 ]$30
Cargill $216.00 $211.00 $216.00 $225.00 $220.00 Cargill
CBH $225.00 $220.00 $227.00 $228.00 $223.00 CBH $12 $8 ]$10 ]$25
EP Grain $224.00 EP Grain
SQP $222.00 $222.00 SQP
AGE AGE
C State $220.00 $220.00 $220.00 C State $12 $8 ]$10 ]$30
Riordan Riordan $13 $8 ]$15 ]$25
G'Corp G'Corp
Dreyfus $202.00 $202.00 $202.00 $217.00 $212.00 Dreyfus $10 $6 ]$20 ]$35
ETG $225.00 $220.00 $227.00 $230.00 $225.00 ETG $10 $8 ]$10 ]$25
Glencore $214.00 $209.00 $214.00 $223.00 $215.00 Glencore $15 $8

[malleefarmer]

So australia is the only counrty in the world with depressed prices

How is canada immune from the fall?

Problem at our ports is Grain Companies run the ports in Vic/WA SA and NSW to a degree

The problem isnt demise of single desk its monoloply control of ports by grain companies making it difficult for other traders.

Vitterra assure growers here they will give fair and open access once they takeover abb and gain control of ports here in South Aust

Graincorp, WACBH,ABB are the companies which control stroage and handling and on the face of it they two sets of rules one for traders one for themselves and different fee structure.

Anyway weve had decent rains this week which may get my crops to average or a tad below many areas here will have record harvest