Wynnstay has flagged a strong Q422 which further boosts the PBT we expect for FY22E. We have already seen a number of upgrades, but we lift PBT by a further c£4m today to £19.6m (vs £11.1m delivered in FY21). The main driver of this exceptional performance has been the volatility in the fertiliser sector. With rapidly rising energy prices, some producers of ammonia have ceased production, causing all fertiliser prices to spiral. As a manufacturer, Wynnstay has thus enjoyed windfall profits on stock plus an improvement in cash margins. The higher prices have resulted in some reduction in demand, but this has been comfortably offset by the other factors. Also in Q4, as a result of the hot/dry summer, we have seen an early completion to the harvest. This has boosted volumes for the group’s grain trading operation as farmers look to lock in the current high market prices. Whilst an element of this is simply timing (i.e. earlier volume), the initial comments on the harvest suggest tonnage could be higher than 2021’s 14m tonnes. With wheat prices still comfortably in excess of £250/tonne, farmers have also been buying seed in healthy volumes for the coming season. Finally, the hot summer has also led to limited grass growth for livestock. Thus farmers have been buying feed to supplement meagre natural supplies. As it is unusual to see such demand in the late summer, Wynnstay has had to buy in raw materials at higher prices, which has eroded some of the profit benefit. It is encouraging that farmers have been willing to continue to purchase farm consumables despite higher prices, supported by the current (good) farmgate prices. However, management flags caution about how robust consumer demand will be in the autumn, and whether this ultimately results in pressure on farmgate prices in the new financial year.