Skip to main content

1. Soft commodity strength…

The CEO of Archer Daniels Midland (ADM), a holding in the Firetrail S3 Global opportunities Fund, spoke about the extended strength he sees in soft commodities markets at a conference this week. He gave insights into the impacts from the Russia / Ukraine War, including:

  • Ukraine’s food supply usually feeds 400 million people.
  • Wheat exports are usually 3-5 million tonnes a month. But today only 100k tonnes is leaving the country.
  • If wheat isn’t exported soon, it will create a major storage issue. Storage capacity is at its limits and farmers may not be able to plant / harvest wheat for the upcoming planting season…
  • Wheat prices are expected to stay high. Driving up the price of alternative feeds such as soybean meal as animal feed.

You can read our deep dive into Agriculture and soft commodities from an Australian perspective here.

2. The decarbonisation journey…

California released its “Draft 2022 Scoping Plan” this week. They plan to accelerate the reduction in greenhouse gas (GHG) emissions. Currently >90% of US renewable diesel is sold into California. It’s a positive development for Global portfolio holding Darling Ingredients, who is the largest renewable diesel producer in the US.

Meanwhile we’ve seen plenty of electric vehicle (EV) stimulus around the world. But we haven’t seen internal combustion engine (ICE) stimulus for a while! This week China released plans to stimulate the use of ICE vehicles with a policy that will add an extra 2 million ICE vehicles on the road. It’s part of a package to get the rural economy firing. The catch is that the engine size has to be below 1.6L.

Source: JP Morgan, California Air Resource Board “Draft 2022 Scoping Plan Update”


3. Back on the ground in California

The Firetrail team have been on the ground to assess progress on the Google / Lendlease urban development project in California this week. Lendlease currently has a $100bn+ development pipeline and execution of key developments such as the Google project will be key in unlocking value for Lendlease shareholders.

Click this link for an interesting 2-min video with the Councillors view on the Google project.

Source: Firetrail


This article is prepared by Firetrail Investments Pty Limited (‘Firetrail’) (ABN 98 622 377 913, AFSL 516821) as the investment manager of the Firetrail Australian High Conviction Fund (ARSN 624 136 045), the Firetrail Absolute Return Fund (ARSN 624 135 879), the Firetrail Australian Small Companies Fund (ARSN 638 792 113) and the Firetrail S3 Global Opportunities Fund (ARSN 653 717 625) (‘the Funds’). Pinnacle Fund Services Limited ('PFSL') (ABN 29 082 494 362, AFSL 238371) is the product issuer of the Fund. PFSL is not licensed to provide financial product advice. PFSL is a wholly-owned subsidiary of the Pinnacle Investment Management Group Limited (‘Pinnacle’) (ABN 22 100 325 184). The Product Disclosure Statement (‘PDS’) and Target Market Determination (‘TMD’) of the relevant Fund are available via the links below. Any potential investor should consider the PDS and TMD before deciding whether to acquire, or continue to hold units in, the Fund.

Links to the Product Disclosure Statement: WHT3810AU, WHT5134AU, WHT3093AU, WHT7794AU

Links to the Target Market Determination: WHT3810AU, WHT5134AU, WHT3093AU, WHT7794AU

For historic TMD’s please contact Pinnacle client service Phone 1300 010 311 or Email

This communication is for general information only. It is not intended as a securities recommendation or statement of opinion intended to influence a person or persons in making a decision in relation to investment. It has been prepared without taking account of any person’s objectives, financial situation or needs. Any persons relying on this information should obtain professional advice before doing so. Past performance is for illustrative purposes only and is not indicative of future performance.

Whilst Firetrail, PFSL and Pinnacle believe the information contained in this communication is reliable, no warranty is given as to its accuracy, reliability or completeness and persons relying on this information do so at their own risk. Subject to any liability which cannot be excluded under the relevant laws, Firetrail, PFSL and Pinnacle disclaim all liability to any person relying on the information contained in this communication in respect of any loss or damage (including consequential loss or damage), however caused, which may be suffered or arise directly or indirectly in respect of such information. This disclaimer extends to any entity that may distribute this communication.

Any opinions and forecasts reflect the judgment and assumptions of Firetrail and its representatives on the basis of information available as at the date of publication and may later change without notice. Any projections contained in this presentation are estimates only and may not be realised in the future.

Unauthorised use, copying, distribution, replication, posting, transmitting, publication, display, or reproduction in whole or in part of the information contained in this communication is prohibited without obtaining prior written permission from Firetrail. Pinnacle and its associates may have interests in financial products and may receive fees from companies referred to during this communication.

This may contain the trade names or trademarks of various third parties, and if so, any such use is solely for illustrative purposes only. All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with, endorsement by, or association of any kind between them and Firetrail.