The are plenty of positives in the global financial crisis for farmers. However as the wheat harvest approaches prices for wheat halved.
Rabobank senior analyst Luke Chandler is quoted in The Age Newspaper as saying:
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Wheat was now at $A307 a tonne, compared with an average $A220-225 in recent years.
On March 11, wheat was $A497 a tonne. Mr Chandler said while prices had come back, they were well above long-term averages.
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On the positive side the Reserve Bank yesterday slashed rates by 1 percentage point, the biggest cut since 1992. Economists are predicting further cuts.
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ECONOMISTS expect more interest rate relief is on the way … with predictions the official interest rate could hit 5 per cent by Christmas.
That would involve another 100-basis-point cut in the last two meetings of the RBA board this year in November and December and would bring the big banks’ interest rates down to about 7.56 per cent if the relief was passed on in full.
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This is certainly welcome news for debt ladened rural Australia. This financial crisis might be the makings of the Rudd Labor government as an economic manager.
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On a lighter note I hope we get some of this rain coming to-morrow night and fill out the heads ‘cos if it doesn’t happen this week it will be too late.
I wonder how the reformed wheat market arrangements will go . I am still mad how they rammed the reforms through - something very suspect about the second vote.
A pox on those who wrecked the single desk !