AWB is a grain trader and as such takes out contracts with growers. The way I see it with grain price at the current low there is only one way for prices to go. That is up. At the beginning of the season wheat contacts were at the $190/$200 mark delivered port. Today the same grain is making around $300 because of the russian drought. Add any more production concerns into the mix and that will only add to the upside. So contracted grain at $200 Vs todays price of $300 makes up a good profit. This applys to all grain traders. So if prices rise so do profits and quickly.
AWB Price at posting:
$1.10 Sentiment: LT Buy Disclosure: Held
