Beef is off nearly 30% from its recent highs in uS markets. Grains are half what they were 6 months ago. Asian demand for premium beef (ie wagyu) is likely to be getting hit hard. Sure the dollar is helping here but forward sales could be realistically affected by the credit crunch. Meat is not a need it is a want.
Land valuations will be declining invariably as credit inflows into rural property effectively dry up. AACo's land assets are FCL's largest asset.
Farmers will keep the chequebook closed now input deflation has begun and credit is tight and this will affect revenues out of Elders. Their grain dealing arm may suffer also as farmers look to sell grain to multinationals who have much stronger balance sheets.
Not downramping just telling it like it is.
FCL Price at posting:
$1.09 Sentiment: None Disclosure: Not Held
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