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The team at Peppin are delighted to collaborate with Andrew for friends and clients.
Hi All,

Thanks for supporting our little newssheet. People are getting into it so I’ll keep pressing them out. A bumper water edition this week – lots happening as always.

Andrew Bomm


Price volatility continues
 
 

Temporary water prices continue to climb in the Bidgee as the scale of summer crop planting firms following more fine weather. We’re seeing sales of around $85/ML, around double the lows reached four weeks ago when the rain would seemingly not cease. Although entitlement holdings relative to land are high in the Murrumbidgee Valley, there is still enough opportunistic cropping for there to be strong demand for temporary water in a high allocation scenario. Irrigators are increasingly looking to secure water early in the season if it’s at the right price, and less inclined to take the risk of purchasing on an as needs basis as the season progresses.

In the Murray Valley, the situation has been complicated somewhat by Murray Irrigation’s $49 offer for 12GL of efficiency dividend water. It will have been massively oversubscribed at that price, whatever misgivings their customers might have about the approach. The market priced in such a response, with sales earlier last week around the $70-75 mark (above choke), before the offer had closed. Though MIL’s WE holders might not like this sort of compromise on how to allocate the dividend, they are at a distinct advantage by holding allocation against which this water can effectively be traded for profit. The price is currently around $85/ML, though buyers and sellers are not often reaching agreement at the moment, reflecting a lot of uncertainty. 


CEWH trade a possibility in the new year

After engaging in a little banter with the CEWH on twitter about the difficulty of identifying his trading intent in the Bidgee, coincidentally the next day a statement was released stating that: ‘The Commonwealth Environmental Water Holder currently has no plans to trade water in November or December 2016. However, the Commonwealth Environmental Water Office is currently investigating the feasibility of water allocation sales across a number of southern-connected Basin catchments in early 2017.’ Stay tuned.

Interest in water as a retail investment product

Chris Olszak from water market analysts Aither Consulting was recently interviewed by Alan Kohler about retail investment opportunities in water. In the current investment environment, returns for water are increasingly appealing, though potential investors often remain confused about the basics of entitlement and allocation markets. Chris’ comments about the ability of agricultural producers-investors to manage investment risk by having an accompanying production option available are particularly interesting. The full interview is here: http://www.aither.com.au/news/


Private weather data and grain marketing

Discovery Ag has finalised rolling out an extensive network of 72 automated weather stations across a 12m ha dryland cropping region of NSW. Each hectare is now within 25km of a station, capturing data that is more localised, accurate and detailed than is currently available to farmers. This data includes rainfall, air and soil temperature, wind speed and direction, solar radiation, humidity and barometric pressure. It will be complimented by a similarly extensive soil moisture probe network, offering underground telemetry connectivity and separate rainfall data collection.

It will be interesting to see the potential applications and how this service can be monetised. One application already in pilot phase is a precision area contract with Graincorp, integrating seasonal conditions, agronomic observations and yield data (forecasted and actual) to give transparency and confidence for all parties to area contracts in crops including wheat and canola. It’s a good idea, enabling more growers to take advantage of forward selling opportunities without the production risk concerns attached to fixed tonnage contracts.



US election

There’s a US election this week and Hillary should win, not because she’s a lot more popular than Trump, but because her campaign is better organised. Unlike Trump, she’s got the backing of her party’s organisational machine and this should get more supporters to front at the polling booth, which is ultimately what counts in the US. Whatever happens, it’s not good for Australian agriculture because both will pander to their citizens’ reflexive opposition to globalisation and free trade and adopt a more protectionist approach.



New hiring platform – AgDraft

Ella Shannon is a young agricultural entrepreneur who has set up an innovative new way for finding farm labour. AgDraft is an online marketplace where farmers can post jobs to an extended network of workers - either full-time, casual or seasonal - that are effectively reference-checked by their peers. It’s a good idea and can help businesses struggling to find the right people through local networks.
Click here


Cricket is back

The cricket is on, so it’s a cricket podcast. Unfortunately all the Australian ones are rubbish, so here’s a Pommy one that’s pretty good. They even give the Kat v Clarke thing a run in their latest.
Listen


A 1988 cultural special

All kinds of gold in this mix of ads from Shepparton TV in 1988. Check out the ad for VCR players for only $799!
Click here


More money for jam

I love $1.45 prices in federal politics. You can get this price about the next female Prime Minister taking office in 2020 or later. Given that so many unlikely things need to happen in the meantime this is a steal, albeit one you need to wait to collect on!


John Stevenson runs a farm at Lockhart for Warakirri Cropping and is doing a Nuffield Scholarship looking at plant available water capacity. He’s on twitter using the handle @cropmad and provides a lot of informative and entertaining material. 


GRDC pre-emergent herbicide workshops

These are being held at Temora (8th), Griffith (9th) and Moama (10th) – all an 8.30am start. More information here.
Click here
New Energy Technologies for Industry Workshop - Leeton

You are invited to a workshop to learn how industry can benefit from the latest proven energy efficient and renewable technology, minimise gas and electricity costs and contribute to a low carbon economy.

Date: Tuesday, November 8, 2016 8am-11.30am
Venue: Leeton Shire Chambers
RSVP:  Marg Couch at po@rdariverina.org.au or on 0487 922 570
Follow @progressiveagri on Twitter
Our mailing address is:
andrew@progressiveagriculture.com.au

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