Bloomberg writers Pablo Rosendo Gonzalez, Andy Hoffman and Javier Blas reported on Thursday that, “The head of Louis Dreyfus Co., one of the world’s top-four food-commodities traders, said that agricultural prices will remain low into 2017 as farmers around the world harvest bumper crops.
“‘Prices for wheat, corn, soybean will continue going down,’ Dreyfus Chief Executive Officer Gonzalo Ramirez Martiarena said in an interview in Buenos Aires this week. ‘Corn yields are so good, productivity is so high in the U.S. that they keep planting despite low prices.'”
The Bloomberg article stated that, “The views of Dreyfus, as the company is known, and its rivals, including Archer-Daniels-Midland Co., Bunge Ltd., Cargill Inc., are closely followed by commodity investors because their trading relationships give them insight into global supply, demand and inventories trends. The four are known as the ABCD of food commodities for their initials.”
Last week’s article added that, “Ramirez is trying to steady Dreyfus amid lower crop prices and reduced price volatility. He announced plans earlier this year to seek joint-venture partners for businesses including orange juice, dairy, metals and fertilizer. In March, the closely held firm said full-year profit dropped 67 percent to the lowest in a decade.”
