Under the old AWB monopoly the AWB used to store wheat with CBH for up to 11 months in the storage system abusing cheap storgae rates at the expense of CBH co-operative members. Now the system is deregulated the movement of the WA wheat crop onto shipping lines is now brought forward to moving as much as is physically possible after harvest (4-5 months as opposed to 11-12 months). Its not rocket science ...
CBH's weaknesses were simply hidden under deregulation. Now we will see competition move into the grain storage and handling arena further benefiting Western Australian wheat producers. The proposed port at Point Walter south of Fremantle will provide some fantastic and much needed competition in this area. Not to mention the capacity freed in the Geraldton port zone with reduced iron ore volumes coming through the port ...
Deregulation is a boon to WA wheat producers. Land valuations in the zones close to port are confirming the attractiveness of such areas to agriculturally inclined investors and food insecure States abroad. Wellards (the Arabs) in particular have been procuring large swaths of high rainfall country ...
AWB Price at posting:
97.7¢ Sentiment: LT Sell Disclosure: Not Held
