Federal Government forecaster ABARES, like the BOM, does not get everything correct but it states:
"The gross value of agricultural production is forecast to reach $85 billion in 2022−23, just shy of the record set the previous year (Figure 1.1). The combined value of agriculture, fisheries and forestry production is forecast to reach $91 billion. Extremely high rainfall and low temperatures have led to upgrades to crop production forecasts in many areas adding an additional $4 billion in crop value compared to ABARES September estimates. Grain and milk prices are forecast to average higher in 2022−23, and livestock prices, while forecast to fall, will still be at relatively high levels. Favourable conditions are also driving the continued rebuild of livestock numbers. Considerable uncertainty remains over winter crop harvest progress and grain quality in New South Wales and Victoria given ongoing high rainfall, which could lead to downgrades in production value..."
Pretty darn optimistic.
If it becomes reality, GNC will benefit.
GNC Price at posting:
$7.94 Sentiment: Hold Disclosure: Held
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