The Graincorp Ltd (ASX: GNC) share price is lifting once more on Tuesday. In fact, it surged more than 2% to a new record high in intraday trade.
It’s the third session in a row the agribusiness has struck the milestone despite no word having been released by the company since early April.
At the time of writing, the Graincorp share price is $10.51, 0.96% higher than its previous close.
Though, earlier today it hit a high of $10.64, representing a 2.2% gain and new record high.
Let’s take a look at what’s boosting the Graincorp share price to never-before-seen heights today.
Why’s the Graincorp share price trading at a record high?
The Graincorp share price hit a new all-time high on Tuesday following months of strong performance.
Way back in February the company revealed its expectation that financial year 2022 would bring underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) of between $480 million and $540 million and underlying net profits after tax (NPAT) of $235 million to $280 million.
That guidance was a significant step up from the company’s financial year 2021 earnings.
Its heightened expectations were due to its strong Australian production alongside a supply shortage in the Northern Hemisphere.
That guidance upgrade likely sated many bullish market watchers. But it didn’t end there.
Global demand for grain and oil skyrocketed soon after the upgrade on the back of Russia’s invasion of Ukraine.
Additionally, the company dodged potentially major disruptions from weather events on Australia’s east coast while conditions for its winter crop remained excellent.
As a result, it upgraded its guidance once more in April.
Graincorp now expects to report between $590 million and $670 million of underlying EBITDA. It’s also forecasting an underlying NPAT of between $130 million and $370 million.
Perhaps unsurprisingly, the Graincorp share price has gained nearly 25% since the start of 2022, helping it reach today’s record high.