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Agri equipment sales + Soft Commodities Update

June 19, 2024
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Anthony Clark
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Anthony Clark

May agricultural equipment sales & recent update on global sot commodities & sector

To cover the agricultural sector as well as the JSE Food Producers sector you have to understand the key drivers that me the market, the underlying fundamentals as well as the levers

These are all pretty obvious but few take the time & care to properly follow and analyse. I do. I cover agricultural equipment sales - vital to understand the financial mood of farmers. 

I track soft commodity prices - key to farm revenue and guidance to future planting trends as well as the input pressures to the food value chain. The recent surge in what to record ever prices has hit the wheaten value chain HARD. Thus, do you really want to be in food stocks where there is high exposure & possible margin erosion from high input costs? Bad news for the likes of Tiger Brands

I also cover fertilsier - a key input cost and the largest cost in the production of a hectare of any field crop. Fertiliser has soared in the past year. Great news for the likes of Omnia Holdings

I publish a review of the agriculture and soft commodity sector pretty much fortnightly. I enclose a recent note in what is a fast paced and fast moving environment. 

I've had a LONG agriculture SHORT food producers recommendation for 2 years. It has been THE right call given the share prices weaknesses seen in the food sector. I have no plans to change that view anytime soon.

Link to my report 

https://drive.google.com/file/d/1GKwOSZ1zAMlwj-smuFzzdF8fZ11K2AMZ/view?usp=sharing

 

 

 


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