From Motley Fool.
Another stock that is likely to feel the pressure is port and freight company
Qube Holdings Ltd(ASX: QUB).
According to the government department’s forecast, Queensland’s crop yield will tumble 38% and Credit Suisse notes that Qube has a big exposure to that state.
“Transport and handling of agriculture products contributes 20%-25% of Qube’s Logistics segment revenue and ~10% of Qube’s total revenue, but the impact to margin from changes in agricultural volumes is even larger than the contribution to revenue,” said Credit Suisse.
“This is due to Qube shipping grain and other agricultural products in shipping containers that would otherwise be returned overseas empty and incur a cost to Qube rather than a revenue opportunity.”
(20min delay)