How would a million tonne wheat contract going to the Yanks that would normally go the AWB sound as reason for another leg down? So I'm holding out a bit longer. Punters buying the AWB now assume that the ' div yield 7% 100% franked ' carrot can in fact be realised. However:
1. They first have to sell the wheat. 2. When they lose the Single Desk, there is scope for their (I mean Australian farmer's) wheat inventory to be marketed by 'third' interest' parties since not many foreign buyers will be keen to buy from the AWB. Govt will have to act in the farmers interest here since it is because of their over-regulation that this mess has bred itself. It will also be in the Nations Interest as I believe the wheat market is about to take off = serious export income for Australia at a time when metals could slow. 3. Lets hope there are no financial liabilities which may be pursued through the International legal process by US or Canadian farmers.
I wouldn't sleep at night holding on the long side. Each unto their own.
AWB Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
