Last year's serious drought was certainly bad news for uninsured farmers, unhedged buyers of grain, and those who were on the other side of the hedging transactions. On the flip side, the resulting high grain prices have been good news for equipment makers like Deere (NYSE:DE) and Lindsay (NYSE:LNN).
The biggest questions for the world's second-largest maker of
irrigation equipment now are how much longer the good times will last
and whether investors have already let their expectations get ahead of
reality.
Strong Results In Fiscal Q2
Results at Lindsay and chief rival Valmont (NYSE:VMI)
have historically tracked the price of corn, and that relationship has
led to strong results in recent quarters for the company.
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