{"id":279,"date":"2018-01-04T10:20:09","date_gmt":"2018-01-04T10:20:09","guid":{"rendered":"http:\/\/commodityconversations.com\/wordpress2\/?p=279"},"modified":"2018-10-31T09:51:16","modified_gmt":"2018-10-31T09:51:16","slug":"commodity-conversations-weekly-press-summary","status":"publish","type":"post","link":"https:\/\/commodityconversations.com\/wordpress2\/2018\/01\/04\/commodity-conversations-weekly-press-summary\/","title":{"rendered":"Commodity Conversations Weekly Press Summary"},"content":{"rendered":"

Cargill<\/a><\/span> reported a 6% drop in their net Sep-Nov quarterly earnings to USD 924 million, mainly due to falling revenues in their grains and oilseeds trading unit. The company said that high grains inventories in the US and the rest of the world resulted in lower volatility and therefore fewer trading opportunities. The group – which spent over USD 1 billion<\/span><\/a> this quarter in acquisitions, joint ventures and infrastructure investments – will continue to expand towards \u201cmore sophisticated feed additives\u201d and to shift towards \u201csustainable, natural feed ingredients that improve animal health and embrace changing consumer values.\u201d<\/span><\/p>\n

Cargill<\/a><\/span> also announced the acquisition of pet foods Pro-Pet, a move which will make the company the only national marketer of animal feed and pet foods in the US. In India, meanwhile, Cargill<\/span><\/a> will spend USD 236 million on its expansion over the next few years, including cocoa products and animal feed nutrition. The company is also investing USD 15.75 million in building storage capacity. <\/span><\/p>\n

The US Department of Agriculture<\/span><\/a> forecasts that people in the US will eat an average 45.72kg of red meat and chicken in 2018, more than the 2004 record. This is the equivalent of 283g\/day, against the government prescribed 184g\/day. Consumption declined by 9% from 2007 to 2014 because of higher commodity prices and a shift away from meat diet because of health, climate and animal welfare related concerns. <\/span><\/p>\n

Brazil\u2019s Port of Sao Paulo<\/span><\/a> handled a record 129 million mt of cargo in 2017, beating the previous record set in 2015 by 8% and an increase of 14% on 2016. Out of the total, 49.5% was agribusiness goods, up from 47.8% in 2016. Sugar was the most exported crop at 21.1 million mt, followed by soybean with 16.5 million mt, out of which 85% went to China. The port expects to handle an even greater tonnage next year, with a 3.2% increase forecast. <\/span><\/p>\n

Brazilian exports to China could increase as the latter is now requesting that soybean<\/span><\/a> imported from the US contain 1% or less foreign materials, which renders half of the USD 14 billion annual exports ineligible and requires additional processing at Chinese ports, increasing costs for US farmers and traders.<\/span><\/p>\n

China invested 20 billion in the ship financing<\/span><\/a> sector in 2017, a 33% increase year on year as European banks pulled back due to the long down-cycle. As a result, three Chinese groups now own more than 800 ships with a value exceeding USD 23.6 billion. <\/span><\/p>\n

Competition from green plastic<\/span><\/a> manufacturers is increasingly challenging a market dominated by petrochemicals companies. Coca-Cola, for instance, sold over 50 billion plant bottles that contain 30% bioplastic. Among the companies investing in bioplastic, BASF is setting up a 50,000mt cornstarch bottle plant in Belgium, Stora Enso is testing 50% wood fibre-based plastic, and Lego put USD 160 million to research sustainable materials for its toys. <\/span><\/p>\n

Food waste<\/a><\/span> continues to be a major concern in India. As of the middle of last year, the Ministry of Food was involved in 228 projects in building pre\u00ad-cooling and chilled storage from the farm to the consumer in a bid to reduce some of the USD 14 billion food wasted every year. However, experts say progress is too slow, with fingers pointing to the inefficiencies of the public distribution system. Meanwhile, the FAO estimates that 15% of the country is undernourished. <\/span>\u00a0<\/span><\/p>\n

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Cargill reported a 6% drop in their net Sep-Nov quarterly earnings to USD 924 million, mainly due to falling revenues in their grains and oilseeds trading unit. The company said that high grains inventories in the US and the rest of the world resulted in lower volatility and therefore fewer trading opportunities. The group – … <\/p>\n

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