Post by
LauraDover on May 29, 2015 4:40pm
Re: Up 7.01% Today
I assumed that it was the shortage of lentils driving the price up as mentioned in the financial post article linked to below...
Vegetarians get lentil sticker shock after Canadian legume crops shrink: ‘Everyone’s paying more’
Comment by
Matlock on May 29, 2015 9:22pm
Hmmm... AGT buys lentils and processes them. Poor crops mean higher prices, means it costs AGT more to purchase what they need. Now that said, if they can in turn pass those costs along, then that mitigates the effect... although either way, I don't see high crop prices as a positive for AGT. If anything, I'm wondering why the price rose despite that article.
Comment by
Lucentio on May 29, 2015 11:16pm
I suspect they purchase lentils etc from farmers at a negotiated price and pay when the crop is delivered. The delivery is in the future and world prices are rising, and does AGT book a much larger profit? They will use futures to hedge somewhat I'm sure.