Higher wheat prices can only be good news for AWB. AWB makes its money in several ways such as harvest loans to farmers were it lends money to farmers against the value of their grain ( higher grain prices means the farmer can borrow more money against the value of his crop ) meaning more interest and charges. Landmark the the rural sevices arm could have better bottom line as the farmer could spend more. The news of late is of production problems else were. Canada to has had problems and there are other pockets as well. A boost in prices would be good as there is not much profit at current prices. The news that the world is awash with wheat could soon change with just a few major producers having set backs.
AWB Price at posting:
$1.01 Sentiment: LT Buy Disclosure: Held
