Cargill profit up

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CHICAGO, Ill. (Reuters) — A 20 percent quarterly profit jump for Cargill Inc. suggests that recent disappointing quarterly earnings from rival agribusinesses Archer Daniels Midland Co. and Bunge Ltd. may be more of a blip than long- term concern, analysts said.


Cargill navigated sinking crop prices, volatile currencies and slowing growth in China to turn in a US$512 million profit in its first quarter, bouncing back from a $51 million loss due to one-time charges in the previous quarter.


The results indicate surprising strength for agricultural traders, compared to broader commodity companies such as Glencore Plc and Noble Group, which also have holdings in industrial and precious metals.


Margins are typically thin in the grain business, but volumes are massive when crop supplies are ample and prices low, as they are now.


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