Rains are coming

Week ending 7th Feb 2020

After a few weeks off its good to be back at work and the rains are coming…. Hooray for that.

The weather pattern looks to have changed and all the humidity here in Sydney over the past 3 weeks has turned into heavy rain. It looks like the bush should get some as well.

Not trying to sound too cynical but during the recent bushfires in Dec the BOM was telling us there would be no significant rain until April….wrong AGAIN..!!

Word on the street is that sheep and cattle prices are on the rise. Easy to see why. There has been a lot sold for slaughter due to the drought, China is short protein and now that its raining the re-stockers will want to but as well.

On the stock market I was asked the other day which stocks to buy given the rains? Well, firstly ELD will see a benefit, then GNC, but later in the year. (remember though that the stock market runs ahead of the real world) After that the dairy companies will respond like BGA and FNP. The hard one to work out is D2O. This should lower water prices, but increase volumes, so net net probably positive.

Finally, in this world of crazy eating habits and foods, it was hard to keep a straight face after reading this comment from a so called “celebrity chef”. “Consumers are pivoting towards a ‘climate diet’”……Does that mean you eat less to lower your emissions via farting less…???

On sport, and I don’t want to sound like Alan Jones but, Rugby Australia seem to be digging a very deep hole for themselves. News this week that Fox sports are heading for the door leaves them relying on Optus via cable for coverage which sports fans will have to pay for…!!!