GrainCorp Warns Supply Glut Will Hit Profit, Shares Drop 19%

Australia’s GrainCorp Ltd., a leading exporter of wheat and other crops, warned Monday that a global supply glut would result in sharply lower earnings, sending its shares tumbling to a four-year low.

The stock plunged by more than 19% to the lowest since August 2021 at one point after the company released its updated guidance. GrainCorp has dropped by around a third since early October as a bumper harvest in the US and good conditions in South America had already led to fears of oversupply.