SP here is a summary of ASX listed agricultural plays:
The East Coast grain handler and marketer GNC.AX could be a takeover target, as VTA.AX currently has a takeover offer from Glencore. There has been recently good rains over in GNC’s production zone (NSW). It is about volume for them. More grain more gain.
IPL.AX is the only phosphatics and nitrogen fertilizer manufacturer in Australia and is a favourite of mine but they have about 60% (I think) exposure to the explosives market which is cooling.
NUF.AX is an Australian based herbicides manufacturer and seeds supplier. In the case of the US drought, NUF has exposure to that market so its sales could be hit this year but you could bet on a robust year in 2013 as farmers lock away high grain prices and look to capitalise on them next year. Most of the herbicides Australian graingrowers use come from NUF. They rejected a takeover offer from Sinochem at $16!!!!! They are now $5.
PAG.AX is a corporate grain producer. It has good grain prices on offer, has been getting good rains lately and plenty of irrigation reserves. Their profits have been affected the last 2 years by too much rain. They are attracting some big names to their share register.
AAC.AX is a play on low cost animal protein but given the recent government intervention in the trade one to maybe avoid until a change of government.
MAK.AX is a rank outsider and the penny dreadful I rode to dizzy heights in 2007. It has the biggest undeveloped phosphate resource in Australia close to plenty of natural gas (for value adding) and transport infrastructure but they have nearly a $2 mill draw on cash a quarter. Run by a bunch of greedy mongrels!
