SYDNEY, AUSTRALIA — International trade tensions on grain flows disrupted grain trading conditions within the grains business unit at GrainCorp over the last six weeks of its reporting period ended March 31, the company announced on April 18.
Along with trade tensions, GrainCorp said operations have been adversely affected by the impact of ongoing drought conditions in eastern Australia, which significantly affected summer crop production, most particularly sorghum.
As a result of the challenges, GrainCorp said its grains business unit has experienced a deterioration of approximately A$40 million in expected EBITDA for the half-year period ended March 31.
“Clearly this is a disappointing outcome in a challenging period in international grain markets, compounded by the ongoing drought conditions in Australia,” said Mark Palmquist, chief executive officer. “However, we have strong risk management processes in place and continue to closely monitor market conditions.”
GrainCorp will release its half-year results on May 9.