Cargill, Daniels Midland, Wall Street Journal discussed on The Morning Show with Orion Samuelson & Max Armstrong


Possibility of a major are coming together of companies in the global grain marketing industry we've talked often over the years about a b c and d in grain marketing let's eighty for archerdanielsmidland and the b for bungee and see for cargill and d for louisdreyfuss all major traders and the global community for grain trading well there could be only three instead of four of those companies because yesterday archer daniels midland proposed a takeover of bungee that according to the wall street journal and it's a move that could set up a battle for bungee with the swiss based rival glencore now large grain graders which make money by buying selling story you shipping and trading crop said struggled in recent years with the oversupply on the global scene thin margins that have squeezed the core commodity trading operations including bondi adm guard deal and louisdreyfuss are having new challenges and consolidation is seen as one the rent of a remedy last year glencore did dizzy could tie up with grain greater monkey in what was viewed as the beginning of a wave of consolidation in the industry the journal quoted unnamed sources as saying that a dea may have made the off approach and that details were unclear white plains new york bays mongia operates had more than forty countries and is brazil's largest exporter of agricultural products while chicagobased adm says it has customers in one hundred sixty countries a bungee did the clothes up eleven percent on fridays market activity and the made little comment than adm says it does not comment on rumors or speculation bungee not immediately available for comment but just as farmers have been facing price challenges for their crops the same has been happening to a grain companies and so believe expanded in the higher margin activities such as food ingredients and even aquaculture to offset weak results and wild swings connected to their traditional business of handling crops two thousand fourteen for example adm bought natural ingredient company wildflower.

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