The shares of Australia’s integrated grain and edible oil company GrainCorp Limited (ASX:GNC) were on the rise today (31 October 2022) despite there being no price-sensitive update from the company. GrainCorp’s shares were  trading 7.860% up at AU$8.370 on the ASX at 4:40 PM AEDT.

The broader market index S&P/ASX 200 Consumer Staples sector also traded in the green today.

GrainCorp's share price has gained 5.95% in the last five days, while it has fallen 19.60% over the past six months. Additionally, GrainCorp shares are down 0.59% year to date, while they have risen 33.71% over the previous 12 months (as of 4:52 PM AEDT, 31 October 2022).

What’s behind this increase in GrainCorp’s share prices?

The company has not released any important update that could have been behind its share prices thriving on the ASX. However, the prices of wheat have rocketed over the weekend due to Russia suspending a major Black Sea grain export deal.

According to a speech by Ukrainian President Volodymyr Zelenskyy, Russia has withdrawn from the grain export agreement that allowed safe passage to ships transporting grain from Ukraine. About 176 vessels containing grain have been restricted from following their route.

Zelenskyy accused Russia of trying to trigger widespread starvation in Africa and Asia with this step.

Recent developments at GrainCorp

On 10 August 2022, GrainCorp shared its upgraded earnings guidance for the 12 months ending 30 September 2022. The underlying EBITDA for FY22 has been increased to AU$680–AU$730 million (previously AU$590–AU$670 million) and the FY22 NPAT has been increased to AU$365–AU$400 million (from AU$310–AU$370 million last year).

Talking about this FY22 guidance, Robert Spurway, Managing Director and CEO, GrainCorp Limited, said:

Image Source: © 2022 Kalkine Media® Data Source: Company announcement dated 10 August

The company also mentioned that GrainCorp's Processing and Feeds, Fats and Oils (FFO) businesses are performing well as a result of the high demand for unrefined and refined vegetable oils along with renewable fuel feedstocks.