I think GNC has taken away some of the higher margin bulk wheat export business from AWB. Cost control helps too. As for whether this is permanent, I am not sure. It depends on the pricing tactics used by AWB.
As for future pricing, it depends on the ABB takeover. If ABB is taken over by the Canadian mob, it will be seen as a small positive. Farmers who want to deal with local Australian companies may start making noises about breaking up the wheat export monopoly in South Australia.
Generally in the long term, the more news you see about deregulation, it will be positive for GNC. As for the short term outlook, it depends on the dilution of the upcoming SPP. That may be the short term swing factor. Otherwise, long term outlook for GNC should be positive.
GNC Price at posting:
$5.88 Sentiment: Hold Disclosure: Held
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