AgriCultivate: Wheat cooling off and what the new Labor government means for agriculture
There have been recent losses in CBOT wheat. Although Australian growers have generally offered grain for sale at recent traded prices, overall demand does seem to be cooling off.
The agricultural industry is still trying to work out what lies ahead with the new Labor government. Unsurprisingly, lobby groups are calling on the new government to focus on skills shortages, biosecurity (particularly focusing on lumpy skin and foot and mouth disease). The cabinet has been announced with Murray Watt taking on the roles of Minister for Agriculture, Fisheries and Forestry and Emergency Management. Mr Watt replaces the Member for Maranoa David Littleproud, who on Monday was elected the new Federal National Party Leader.
David Littleproud will lead the federal Nationals in opposition after defeating Barnaby Joyce and Darren Chester. Littleproud, a former agribusiness banker has promised to pursue a market-based solution to guide farmers through the challenges of global warming.
This week, the ASX in partnership with S&P Dow Jones Indices have launched an agribusiness index including 25 larger listed companies whose principal business activity relates to either primary production or production of commodities used as inputs. The index will enable agribusinesses to access increased investment capital and will provide new opportunities for investors to gain exposure to the ag sector.
A new AgTech product is helping farmers to assess the true value of their land. The mapping product offers farmers a pathway to value non-traditional farming assets such as remnant vegetation, watercourses and areas of significant biodiversity.
Finally, at Smith Shearer we continue to focus on sharing information about income-averaging to primary producers. If you know of a farmer who may have a niggling worry that they’re paying too much tax, ask them to reach out to us for our free five-year average assessment. We’ve also introduced a new team member, Deborah Walker-Marshall, to Smith Shearer in the role of Executive Assistant and Client Services Assistant for our SMSF division.
All the best,
CBOT wheat market sets tone for Australian buyers taking a cautious approach
There's a lot of risk already priced into global grain markets. Restricted supply from the Black Sea and poor crop conditions in North America and Europe have been known, monitored, and priced in by the market for some time.
David Littleproud becomes new National Party leader
The National Party hopes its future lies in the hands of a young, third-generation Queensland politician, who has championed regional communities and talked up trade agreements ever since he had access to a microphone.
Agriculture leaders say they are ready to work with new Albanese Government and have urged the new Prime Minister to prioritise biosecurity, labour shortages and resetting the trade relationship with China.
ASX launches agribusiness index, as more investors seek to include ag in their portfolio
THE increasing desire among investors to include agriculture-related stocks in their portfolio is one of the key reasons why the Australian Securities Exchange has launched an agribusiness index this week.
The meeting minutes for the RBA Monetary Policy Meeting of the Reserve Bank Board, 2 August 2022, have been released. Members noted some global supply chain pressures have eased and global input prices are easing. It’s indicated pressures on supply will reduce further as a result of interest rate rises. Headline inflation is expected to be around 7 ¾ per cent at the end of 2022.
The Australian Grains Industry Conference (AGIC) 2022 was held in Melbourne last week. Ukrainian Grain Association President Mykola Gorbachov shared an emotional speech labelling the movement of grain out of Ukraine as an ‘evacuation’ rather than an export agreement.