Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 
All NewsEconomyCurrencies / ForexCryptocurrenciesEconomic EventsPress releases

Beef, eggs, animal feed fatten Cargill's profits

share with twitter share with LinkedIn share with facebook
share via e-mail
0
07/13/2018 | 12:00am CEST
A Cargill logo is pictured on the Provimi Kliba and Protector animal nutrition factory in Lucens

CHICAGO (Reuters) - Strong global demand for beef and animal feed fattened grain trader Cargill Inc's profits in fiscal year 2018, which were also boosted by trade tensions and South American weather woes, the company said on Thursday.

For the full year, adjusted operating earnings reached $3.2 billion, up 6 percent from fiscal 2017. Company officials said that was the highest ever, excluding earnings from Cargill's investment in fertilizer producer the Mosaic Company, which it exited in fiscal 2011.

The impact of a drought in Argentina, and volatility in financial and commodity markets sparked by trade disputes between the United States and top commerce partners China and Mexico, helped Cargill's grain trading unit to its strongest fourth-quarter showing in seven years.

Years of global oversupply have depressed grains prices and made it difficult for top agricultural grains merchants such as Cargill to turn a profit buying and selling food staples such as corn, soybeans and wheat.

But the drought in Argentina has eaten into the supply glut, while tit-for-tat tariffs have disrupted global grain flows, giving merchants space to profit.

Cargill's Chief Financial Officer Marcel Smits warned that too much volatility could be a problem, however.

The company has mapped out plans internally to deal with disruptions to trade, Smits said in an interview Thursday. But the plans could quickly lose relevance, given the speed at which the trade disputes are developing.

"We have potentially an advantage in terms of anticipating different scenarios, but it is hard to risk manage yourself through some of that volatility," Smits said.

Over the past fiscal year, the demand for protein and animal feed was the biggest boost to Cargill's bottom line.

U.S. beef packer margins have hit historic highs due to low cattle prices and strong retailer appetite heading into America's summer grilling season.

Global demand for all proteins – whether from meat and poultry, or aquaculture and plants – is booming in emerging markets in Asia and Africa, in part due to rising incomes, industry analysts say.

Cargill has steadily expanded its portfolio in the sector in recent years, from investing in U.S. pea protein production to buying Pollos El Bucanero SA, one of Colombia’s largest meat producers.

In its traditional crop businesses, Cargill's soy crush margins have improved worldwide, Smits said.

Cargill's net earnings rose to $711 million in the fourth quarter ended May 31, from $347 million a year earlier.

(Additional reporting by Karan Nagarkatti in Bengaluru and Theopolis Waters in Chicago; editing by Simon Webb, Susan Thomas and Tom Brown)

By P.J. Huffstutter and Tom Polansek

Stocks mentioned in the article
ChangeLast1st jan.
ARCHER-DANIELS-MIDLAND COMPANY -0.28% 47.12 Delayed Quote.17.56%
BUNGE LTD 0.09% 68.03 Delayed Quote.1.42%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Economy & Forex"
05:03aWESTERN AGRICULTURAL PROCESSORS ASSOCIATION : CalOSHA Hears WAPA Concerns on Conveyors
PU
04:33aMEKONG TOURISM COORDINATING OFFICE : ADB supports Cambodia in climate resilience and agriculture sector
PU
04:23aODOT OREGON DEPARTMENT OF TRANSPORTATION : US30 and OR7 to be temporarily closed July 21 for Miner's Jubilee Parade in Baker City
PU
04:13aCENTRAL PEOPLE GOVERNMENT OF PEOPLE RE : China key partner for Senegal, ambassador says
PU
03:48aGOVERNMENT OF CANADA : Ministers LeBlanc and Brison welcome progress on trade between provinces and territories
PU
03:36aAmazon, Toyota, Alcoa and others working to counter Trump's tariff plans
RE
03:35aCryptocurrency exchange Coinbase forms political action committee
RE
01:23aULTRA MODERN POOL AND PATIO : Common Pool Maintenance Mistakes
PU
01:17aU.S. lawmakers cut anti-ZTE measure from defense bill
RE
01:15aU.S. lawmakers cut anti-ZTE measure from defense bill
RE
Latest news "Economy & Forex"
Advertisement