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Iraq Suspends AWB Wheat Trade

Online Stock Market Trading By Philip White

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Stock Investing Course (EUNN) London - The Iraq government's Grains Board has suspended all trading with Australia wheat exporter AWB until the Iraq food-for-oil investigation is completed.

First, shares of New Century Financial were suspended for trading this morning, raising concerns that the company may have no choice but to file for bankruptcy.

Stock Market Game Australia's AWB said it was disappointed in Iraq's decision in a notice sent to the Australian Stock Exchange Monday. The deal stops AWB from bidding on 1 million tonnes of wheat export to the Middle East country.

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Stock Investing Game AWB was the single exporter of wheat to Iraq. Traders believe that AWB is very concerned over losing the wheat export contract- and its single-desk monopoly on Australian grain export.

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Journal Prime Rate Street Wall With the global competition for selling food commodities being stiff, for Australia to have lost a 1 million tonne contract is not going to bare well on their commodity market economy. But in the US, Wheat will probably open higher Monday on speculation of higher demand in bidding to replace the contract.

-- added tax (VAT) levied on the sale of a product, minus the tax paid by a prior seller. For example, a 10 percent VAT on $300 of wheat sold by a farmer to a miller would generate $30 in taxes. If the miller sold the wheat for $700, the tax would be $70 minus $30, he explained. McClure favored exemptions for basic purchases or purchases by nonprofit organizations. Exports would also enter international trade free of tax, he added.

Stock Market News AWB has not commented on the Iraq situation.

Stock Investing Basics Australian PM JohnHowardhas denied reports the Government is committed to ending AWB's wheat export monopoly.

Stock Investing Software At last week's Council of Australian Governments meeting Howard claims the issue of a single-source wheat exporter never came up.

Stock Market Trading Under national competition policy guidelines, the Australian Government reviews the single-source exporter situation from time to time but that there is no planned changes to policy at this time, said Howard.

Stock Investing For Dummy "Reviewing the legislation does not imply government changes," said Howard.

Stock Market Crash Australian farmers say that if there is change to legislation, they have a right to a voice in those decision-making processes.

Stock Investing Tip a new farmer lobby group has been formed with the sole purpose of ending AWB's wheat export monopoly.

The Eastern Wheatgrowers Group had its first meeting a few weeks ago and is now seeking members in New South Wales, Queensland and Victoria.

Spokesman Chris Kellock says the inquiry and the single desk arrangement are intrinsically linked because of a lack of corporate governance.

"The damage that's been caused from the oil for food scandal is such now that we are going to join with Government and try and develop a system that will protect the interests of grain growers," he said.

Adding to AWB's woes, India has released a tender for half a million tonnes of wheat. AWB had been expecting India to buy 1 million tonnes. The setback, while bad for the single desk monopoly exporter, AWB, it only adds weight to the Eastern Wheatgrowers Group in succeeding to draw more farmers into joining.

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