Cargill boss pessimistic on commodity pricesCargill, one of the largest grain commodity traders in the world, reported a 13% increase in third-quarter adjusted earnings last week to $476m (€417m), despite what it described as a “tough” market environment.
Cargill boss pessimistic on commodity prices
Cargill, one of the largest grain commodity traders in the world, reported a 13% increase in third-quarter adjusted earnings last week to $476m (€417m), despite what it described as a “tough” market environment.
Cargill’s third-quarter revenues to the end of February 2016 were back 11% to $25.2bn (€22bn), with the group blaming the continued weakness of commodity prices, a bullish US dollar hampering exports and the sale of its pork business last November.
David MacLennan, chair and chief executive of the privately-owned Cargill group, said prices and volatility in agricultural commodities remain low, with bountiful global grain stocks at present.
Grain traders such as
Cargill perform strongest when there is volatility in the market, shipping grain from one side of the world to the other.
Cargill’s grain division was helped by Argentina’s return to export markets, following a relaxation of tariffs last year.
Its animal nutrition and protein division recorded a drop in earnings for the quarter.
The high cost of cattle in the US, weak US beef exports, strong dollar and reduced cattle supplies in Australia due to drought all combined to weigh on margins.
This is a subscriber-only article
SHARING OPTIONS: