you would have to graph as a comparison but I think you're largely wrong mate - its fancy pants shorters-- that volatility in wheat price is ongoing, and they are still healthy levels at any rate---yes some psychology , but really for Graincorp the only influences are weather and the comparison price with other crops -we mug farmers are still going to grow something if the weather is ok, never mind the absolute price - even stock prices affect acreage planted, particularly in the Southern and Western areas ( West Aust, but also say sw NSW and western Vic)
Faba beans, oats ( mainly for grazing and would not know if GNC even handle oats in their silo system) vetch , linseed is substituted to some extent, and chick peas and canola moreso -
Summer crops compete for acreage a fair amount, but it has been so wet there is a fair amount of double cropping to help make up for acreage loses due to wet ground....GNC does better with the higher tonneage crops like barley and wheat, although it charges more to handle canola and chickpeas etc- of course canola is important for their oilseeds business, but canola prices dropping may be a help to margins, if the oil price stays up! (but in longer term canola prices coming down will likely mean vege oils are coming down- this is ignoring the meal market side of things )
GNC Price at posting:
$8.21 Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)