paydirt made some relevant points but to clarify - the actual price is not that relevant to GNC, but only to a point- if prices low then farmers a bit pickier about fees and charges, and also frain marketing margins likely to drop- if they stay low for long enough, then acres planted and then tonnes harvested tend to be lower- the lower prices does not pertain to oilseeds, where there is strength, but also a lower price likley better for their crushing business!
However, the biggest driver of Graincorp profitability is export tonnes - a bigger crop (and it is already planted so tonnages mainly weather driven , bar a little affected by management decisions late in crop life i.e. a higher price then farmers spend more to maximise yield as in spraying, topdressing and /or preharvest and harvest practices to maximise yield) means more bucks for graincorp -rain forecast again for some of nsw and Queensland grain belts- Vic had light falls a few days ago in East and South
crop looking big, but August critical, especially on light soils like Mallee and some central and southern nsw areas
gnc looks decidedly cheap here
GNC Price at posting:
$3.78 Sentiment: Hold Disclosure: Held
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