Grain Market Update / Strategy West Midlands Group 7 March 2014 Ryan Duane Farmanco

Grain Market Update / Strategy

West Midlands Group 7 March 2014

Ryan DuaneFarmancowww.farmanco.com.au

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Disclaimer

Farmanco Marketing Pty Ltd is a Corporate Authorised Representative No. 341189 of Primary Financial Services Pty Ltd (AFSL No. 338360).

Don McTaggart (No. 298483), Ryan Duane (No. 407412), and Mae Connelly (No. 315016) are Authorised Representatives of Primary Financial Services Pty Ltd (AFSL No. 338360).

General Advice DisclaimerThe information and opinions within this document are of a general nature only and do not take into account the particular needs or individual circumstances of investors. The Material does not constitute any investment recommendation or advice nor does it constitute legal or taxation advice. Primary Financial Services Pty Ltd (ABN 37 136 347 610) (The Licensee) does not give any warranty, whether express or implied, as to the accuracy, reliability or otherwise of the information and opinions contained herein and to the maximum extent permissible by law, accepts no liability in contract, tort (including negligence) or otherwise for any loss or damages suffered as a result of reliance on such information or opinions. The Licensee does not endorse any third parties that may have provided information included in the Material.

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Agenda

• Market update

• WA Harvest Summary

• Strategy

• Questions

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Market Update

12/13 13/14 12/13 13/14

Corn 273.8 353.7 863.0 966.6 Yield (b/ac) 123.4 158.8

Wheat 60.5 57.9 656.3 711.9Soybeans 82.6 89.5 268.3 287.7 Yield (b/ac) 39.3 43.3

Corn 20.9 37.6 134.0 157.3Wheat 19.5 15.2 175.8 183.7Soybeans 3.8 4.1 58.7 73.0

(Source: USDA February 2014 WASDE. mmt = million metric tonnes. b/ac = bushels per acre)

US production (mmt) Global Production (mmt)

US Ending Stocks (mmt) Global Ending Stocks (mmt)

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WA Harvest

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WA Harvest

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WA Harvest

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Shipping capacity in WA

Port Production (mmt) Annual Capacity (mmt)

ALBANY 3.6 2.4 (150%)ESPERANCE 2.7 2.0 (135%)GERALDTON 2.0 2.4 (83%)KWINANA** 7.5 5.4 (100%)

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WA Harvest

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Basis

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Strategy

1. Are prices profitable2. Are prices “good” or “bad”?3. Market outlook4. How much time do you have?5. Products that fit

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Wheat Chart

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Wheat Frequency Table

Price Top % of Price345 5340 10325 20313 30303 40294 50280 60254 70242 80230 90

Jan 09 - Jan 145 years data

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Feed Barley Frequency

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Canola Frequency

Price Top % of Price625 5614 10599 20584 30570 40553 50540 60526 70506 80440 90

Start 09 till now5 years data

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Strategy

Forward Sales Harvest Sales Post-Harvest Sales

Take production risk if prices profitable enough to justify

Sell if prices profitable or historically high

Or for cash flow…

Hold grain if-Market view bullish longer term-Harvest prices historically low

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Thank You

Questions?

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