Lower grain prices means more world consumption and profit for agri-biz

LOWER grain prices, because of a bumper North American harvests, has brought on bumper buying from international grain traders Archer Daniels Midland, Bunge Ltd, Louis Dreyfus Corp and Cargill, Reuters reports.

"With first-rate performance in our agricultural, animal nutrition and meat businesses, Cargill posted strong results, outpacing recent quarters by a good margin," said CEO David MacLennan.

US farmers reaped their largest-ever corn and soybean crops in 2014 while Canadian growers harvested a second consecutive bumper crop, providing domestic processors, livestock producers, biofuel makers and exporters the cheapest raw materials in several years.

Cargill said its Australian beef processing and its US cattle, pork and turkey businesses also generated strong returns. Delayed farmer selling in Brazil and Argentina curbed results in its South American operations, the company said, adding that energy trading profits rose despite tumbling crude oil prices.