The drought will be a massive boom to AAC.
Good operators with plenty of feed resources and geographic diversity in their operations will ride it out better than anyone.
A significant reduction in the national herd during this time will mean restockers (completely unwanted in the saleyards today) will be near impossible to buy once the rain does come.
Small operators are feeding stock because they are too proud to sell their herd off and take low prices now, for fear of not being able to buy them back later at greatly inflated valuations.
There is no economic benefit in feeding cattle, other than for some breeders mainting their genetic line. People buying feed in at today’s prices are only delaying the inevitable and worsening their financial viability.
AAC will be there to capitalise at the end and if you think the NTA backing stacks up well now, wait until beef prices hit record highs once the rain comes.
The drought will be a massive boom to AAC. Good operators with...
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Last
$1.40 |
Change
0.045(3.33%) |
Mkt cap ! $840.8M | |||
| Open | High | Low | Value | Volume |
| $1.36 | $1.41 | $1.36 | $181.2K | 131.0K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 55488 | $1.40 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.41 | 1204 | 1 |
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| Last trade - 16.10pm 23/07/2024 (20 minute delay) ? |
| AAC (ASX) Chart |