The Elders Ltd (ASX: ELD) share price is among the top performers of the S&P/ASX 200 Index (ASX: XJO) at the time of writing.
The Elders share price is currently up 1.81% to $8.99 in late afternoon trading.
Earlier today, it reached an intraday high of $9.21, up 4.3%.
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Hang on, didn't Elders stock crash yesterday?
Yes, it did. The ASX 200 agricultural share fell 7.4%, and the dramatic dip even prompted an ASX query.
Elders responded quickly, saying it didn't know why its share price had dropped so far, nor why its trading volume had spiked.
The company didn't release any price-sensitive news to the ASX yesterday.
However, Elders did note in its response to the ASX that it had held two institutional investor briefings on Tuesday.
While no price-sensitive information was discussed at the briefings, a bunch of sector-wide issues were covered, the company said.
This included current livestock prices declining but remaining well above historical averages.
They also discussed unseasonably wet conditions being likely to impact competitors, softer real estate sales activity, and a strong outlook for winter cropping due to good soil moisture and water availability.
Elders said these factors "suggest that ELD's second half performance will be stronger than first
half performance in FY23".
So, the cause of the drop in the Elders share price to a two-year low of $8.69 remains a mystery.
What's got the Elders share price rising today?
Well, there's probably some buying the dip action afoot, for starters.
In addition, Elders released an investor presentation to the ASX today.
This presentation was delivered to investors at an event hosted by top broker Goldman Sachs today.
Goldman is bullish on Elders and currently has a buy rating on the ASX 200 agricultural share. It also expects the Elders share price to more than double to $18.40 over the next 12 months.
The presentation includes a chart documenting how Elders has continued to grow its underlying earnings before interest and taxes (EBIT) despite major natural disasters and world events.
For example, during the COVID pandemic period, which includes the Russian invasion of Ukraine and rising inflation and interest rates, Elders has grown its EBIT from $74 million in FY19 to $121 million in FY20 (Black Summer fires), $167 million in FY21 (NSW and Queensland floods), and $232 million in FY22 (more floods in NSW and Queensland, and 45% of Queensland in drought).
Such information is useful and likely comforting to investors in ASX 200 agricultural shares. One of the key risks of investing in ag shares is the unpredictable nature of the weather and its impact on crops.
