(Jacob Bunge & Jesse Newman – Wall Street Journal)
Farmers have spent the past few years cutting their spending to cope with a global glut of crops. Now it’s commodity traders’ turn.
Archer Daniels Midland Co. and Bunge Ltd., among the companies that dominate world-wide grain trading and processing, said this week that they are slashing hundreds of millions of dollars in annual spending and restructuring operations to navigate a world awash in corn, soybeans and wheat.
For grain traders, “this has been a humbling year,” said Soren Schroder, Bunge’s chief executive, in an interview Wednesday as after the company reported a decline in quarterly profit.
Five years of back-to-back bumper crops in markets across the globe have kept grain prices low and upended traditional dynamics in the farm sector. Trading giants like ADM, Bunge and Cargill Inc., which buy farmers’ crops to market and process, are being squeezed. Click here to read more.