Bull Crop Markets Drive Record Profits for Cargill in Brazil
· ‘Stars aligned’ with big crops, high prices and real’s decline
· Brazil results provide glimpse of top crop trader’s profits
By Isis Almeida, Bloomberg
April 28, 2021
A bull market that sent agricultural commodities soaring has driven record profits for Cargill Inc. in Brazil, the top soybean exporter.
The Brazilian unit of the world’s largest crop trader posted net profit of more than 2.1 billion reais ($385 million) and revenue of 68.6 billion reais last year, an all-time high. The company benefited from higher prices in the global market, a devaluation of the Brazilian real, strong demand and tighter supplies around the world, said Paulo Sousa, chief executive officer of Cargill in Brazil.
The results offer an insight into how the trader benefited from a renaissance in the business of buying and selling crops, which had struggled with thin margins for years. Cargill, one of America’s largest private firms, last year stopped publishing profit figures for the overall group, ending decades of disclosure.
“The Brazilian producer saw prices climbing in dollars and in reais at the same time,” Sousa said in an interview...
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