farmer ignorance unfortunate, page-19

re: yellowcake ignorance unfortunate Hi gyro,

for the record - once the single desk is gone there is no way of knowing whether the alternative free market will have actually delivered better returns or not. There is of course then no benchmark because you either have a single desk or you don't, LOL!

Whether prices go up or down in following years, the cause / fault will of course depend upon which side you had barracked for pre the deregulation.

fact is that in commodities its volume that speaks plus the fact that Australian grades of White wheat are highly regarded worldwide.

Split that supply into small parcels and let the traders cut each others throats to place it in international markets then all that will happen is that you will introduce a new set of inefficiencies (costs) and whole new set of intermediary profit centres which over the entire crop can reasonably be predicted to be considerably higher than that of the AWB.

Net result is that it can reasonably be predicted that the crop will be sold for no higher value than it would have been in any case, probably less given the interniciene competition (international markets but more sellers), loss of freight efficiencies as multiple traders cart product from every production area, gretaer total profit to middle men.

There can only be one loser in every single scenario regardless of the ruling international price. The producer will always recieve less than would otherwise have been the case.

the arguements relating to hedging etc are completely spurious.

As yellowcake continuously suggests - farmers wishing to hedge their crops (or speculate on the market with or without backing physical) are already able to do so. The single dek is no restriction to their activities.

When it comes to the crunch of reading yc's posts you rewlise that speculating is really his core business - i don't think the average farmer (supposedly aged 57 and with no succession) is particularly interested in following him into day trading on international commodity markets.

Cheers,

Cheers,