Cargill and rivals Archer Daniels Midland Co, Bunge Ltd and Louis Dreyfus Co [AKIRAU.UL], known as the ABCD companies that dominate global grain trading, have been investing in higher-margin businesses to shield themselves from tough conditions in their core grain businesses. Despite a 23.8% rise in revenue for the quarter ending 28 February , US commodities trader Cargill Inc has reported a 2% drop in profits to $161m for the quarter , with the new US tax legislation accounting for a $495m charge. The grain trading industry has been experiencing low profitability in recent years as a global glut of crops have kept prices low and limited volatility in the commodities markets leaves little room for margins.
Despite a 23.8% rise in revenue for the quarter ending 28 February , US commodities trader Cargill Inc has reported a 2% drop in profits to $161m for the quarter , with the new US tax legislation accounting for a $495m charge. The grain trading industry has been experiencing low profitability in recent years as a global glut of crops have kept prices low and limited volatility in the commodities markets leaves little room for margins.