Viterra jumps to 10-mo high buoyed by grain outlook
* Rises despite one-day fall in wheat prices
* UN food agency says grain prices could rise further
WINNIPEG, Manitoba, Jan 7 (Reuters) - Shares of grain
handler Viterra Inc jumped as much as 7 percent to a
10-month high on Friday, supported by a strong outlook for crop
prices.
Analysts who follow the stock of the Canada-based company
said there was no obvious reason for the spike on a day when
Chicago wheat futures fell nearly 2 percent.
But many investors are bullish about agriculture in 2011,
with a global shortage of milling-quality wheat and dryness
concerns for Argentina's soybean and corn crops underpinning
prices.
"As long as part of the complex looks bullish, everything's
going to stay fairly well supported," said Ken Ball, a
commodity futures and options broker at Union Securities in
Winnipeg.
Food prices hit a record high last month and key grains
could climb even further, the United Nations' food agency said
on Wednesday. [ID:nLDE7041BM]
Along with its Canadian base, Viterra owns grain-handling
facilities in South Australia, where a record harvest is
expected and the region does not face the flooding problems of
other areas in the country.
By mid-afternoon on Friday, Viterra shares were up 63
Canadian cents or 6.6 percent at C$10.21 in Toronto, touching
their highest price since March 3, 2010.
($1=
.99 Canadian)
(Reporting by Rod Nickel)