An investment in Australian agriculture with low risk marketing solutions for grain farmers

An investment in Australian agriculture with low risk marketing solutions for grain farmers

Recommended
Aa

Advantage Grain has four structured sales programs that allow farmers to set, forget and get back to farming, while they market their grain for them.

Aa

This is advertiser content for Advantage Grain.

Since the Wheat Marketing Act of 1989 was repealed in 2008 removing AWB's monopoly on bulk wheat exports, the Australian grains sector has seen an ebb and flow of investment in the industry.

Immediately post deregulation we saw agribusinesses from all parts of the globe rally to participate in this market.

Although their investments were well received with new buyers delivering value back to producers, particularly as we came out of a gruelling drought, it created a more volatile environment to sell in.

It was in this environment that post-harvest indexed selling programs were born. Over the past few years as Australia has pushed through another drought, industry consolidation has accelerated and there are now fewer grain marketing options for growers than there were just five years ago.

With eastern Australia on the brink of a bumper harvest and markets showing continued signs of volatility, we're going to take a look at the market drivers, and how indexed post-harvest marketing programs can spread price risk and add further value to your grain throughout the year.

Global grain markets have rallied extensively over the last eight weeks on a downturn in seasonal conditions.

This was led by a combination of factors. A flash drought in the US mid-west lead to a poor finish for their corn and soybean crops.

La Nina weather increased dryness across Argentina and southern Brazil causing a poor finish for their wheat and increasing risk to the upcoming soybean and corn crops.

This was followed up with southern Russia recently sowing winter wheat into what some are saying are the driest soils in 30 years.

Locally, eastern Australia is now on track for the best harvest in four years as La Nina influenced weather brings a cool and wet finish to the winter growing season.

Australian wheat is one of the cheapest wheats in the world at the moment and Australian barley is the cheapest feed grain in the world. This will support a strong cereal export program out of NSW, VIC and SA through 2021.

The mixture of competitively priced Australian cereals and the increased risk for global production during 2021 bodes very well for post-harvest selling.

It is expected prices will be well supported through to July with international production risks that could lead to dramatic spikes in pricing. Just like 12 years ago at the start of deregulation in Australia, an indexed based selling program may be the best way to minimise risk while maximising returns throughout the year.

The Advantage structured marketing programs have served Australian farmers for 12 years. Over the years, the program has evolved to meet changing farmer and market needs, but the core concept of reducing risk by selling an equal portion of grain each month over a set time period has stayed the same.

Advantage boasts four structured sales programs offering farmers market exposure over two, four, five and 10 month periods. The structured programs let you set, forget and get back to farming, while we market your grain and pay you per your chosen payment option.

For those who wish to be more involved in the grain marketing process but want access to the 12 years' experience and industry relationships Advantage brings, our Flexi program lets you choose which months you want to market your grain between January and October.

All programs accept all grades of wheat, barley and canola, come with counterparty insurance and full admin support such as managing warehousing fees, levies and EPR's.

Advantage was born out of a volatile post deregulation market. And although the market has again consolidated over the years, volatility in prices remains, so we're happy to back for the 2020/21 season, investing in Australian agriculture and providing farmers with low risk marketing solutions for their wheat, barley and canola.

For more information on Advantage, call the team on 1300 245 586, email us on info@advantagegrain.com.au or visit the website www.advantagegrain.com.au

This is advertiser content for Advantage Grain.

The story An investment in Australian agriculture with low risk marketing solutions for grain farmers first appeared on The Land.

Aa