Gday John. Thanks for the updates. Australia has just turned BIG. My home State here in Western Australia, the largest producing State in Australia, has seen widespread falls totalling anywhere from 75mm to 160mm (3-6") for the month of July. Our marginal areas are now back in production prospects and that means a lot of wheat.
Quite a bit of canola in around these parts and I imagine that is repeated throughout the high production areas. Our crops have a lot of potential and am quietly excited but you know the drill ... long time til harvest. But we have good subsoil, had good establishment through a very dry period (god bless minimum tillage) with very few weeds and good nutrient use efficiencies.
The rain continued across to the East Coast as well. There is now potential for a bin buster out of Australia now. And I can see lots of stopped harvesters waiting for carriers to get rid of the grain. Most trucks have left the industry after two drught years and with a booming mining sector running flat decks (mucheasier on your gear than bulk haulage).
Australia's fertilizer demand for 2009 is going to be rather large. Makes investing in the producers here kind of easy since earnings are effectively predictable before the next season arrives based on what the previous season removes. And people continue to waste time investing in the broader market? I don't know ... the ag theme is so simple to get your head around.
Oh and Australia is sold out of the most commonly used triazole fungicide for cereals, propiconazole. There has been a major run on all the substitutes the last couple of days and anticipate more shortages. Luckily I predicted that one and have all of this year and next years in the shed at 2007 prices. Unfortunately a lot of farmers learnt nothing from the run up in fertilizer prices. Capacity constraints are going to continue to emerge in this sector.
There is no livestock here. The odd mob of sheep ...
Hope all is well and you're navigating these treacherous waters safely :)
Got agricultural exposure?
