News: Australia's GrainCorp sees shrinking volumes on smaller crop, bigger competition

SYDNEY, Feb 26 (Reuters) - Australian wheat exporter GrainCorp Ltd (GNC) said it expects volumes to shrink in the 2016 fiscal year, generating net profit broadly in line with the previous year, thanks to a below average winter crop and fierce competition globally.

In a statement on Friday, the company said it expects to export 3 million tonnes during the current year, down from 3.5 million tonnes in 2015. The company had not previously given a forecast for 2016.

It added that it expects underlying net profit between $40 million and $55 million for the year, compared $45 the previous year, citing low grain stocks in eastern Australia, increased availability of grain globally and cheap ocean freight thanks to a lower oil price.

"These headwinds have dampened the immediate outlook, but not the benefits of the progress we have made across the business on our strategic initiatives," said Chief Executive Officer Mark Palmquist in the statement, issued before the start of trading.