Graincorp Ltd Class A
GNC: XASX (AUS)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$6.20 | Rwmhp | Cmczwmyly |
GrainCorp: Conditions Continue to Normalize; Shares Overvalued
Grain production volumes continue to revert toward a normalized year. The Australian Department of Agriculture, Fisheries and Forestry estimates 2024 east coast winter grain production of about 23 million metric tons, a 22% decline from 2023. While this is only slightly ahead of the 10-year average, we expect production to fall further. Our estimate of normalized production remains about 18 million metric tons, based on a reversion to longer-term historical averages.