April 23, 2008

ABB Grain rises on improved rain outlook

ABB Grain Ltd. rose by the most in more than six weeks in Sydney trading due to the improved outlook for rain in Australia.

ABB Grain rose 46 cents, or 5.2 percent, to AUD9.36 on the Australian Stock Exchange at the 4:10 p.m. close in Sydney, the biggest gain since March 6.

South Australia, where the company collects most of its grain, may get the most rain in five months this week as farmers prepare to sow crops.

JPMorgan recently said that ABB Grain is best placed of the Australian grain stocks to benefit from higher soft commodity prices.

Meanwhile, rival Australian grain company, AWB Ltd., rose to its highest since January 8 by 20 cents, or 7.2 percent, to AUD2.99.

South Australia is estimated to get 15 millimeters to 30 millimeters of rain in the seven days from yesterday, with heavier falls in southern parts, Brett Dutschke, a meteorologist at the weatherzone.com.au, said.

ABB Grain has risen 11 percent this year compared with a 12 percent drop in the benchmark S&P/ASX 200 Index.