Grain growers should not bank on the historic high prices for Australian grain continuing, according to ABB managing director Michael Iwaniw.
Speaking at a Rural Media luncheon in Adelaide on Friday Mr Iwaniw said with a strong Northern hemisphere crop and the availability of capital becoming scarce grain companies would be hard pressed to offer top dollar.
"Stories of people buying the whole Australian crop or even half the crop are impossible because none of the grain companies including ABB have the balance sheets to do it," he said.
Mr Iwaniw said with deregulation, the risk with grain prices that was carried by ABB or AWB in the past was now carried by growers.
"In average or above average years I think we'll see a dramatic change in grain prices," he said.
* Extract from a full report in Stock Journal, August 7 issue.
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