Market News & Headlines >> Cargill 3Q Earnings

Cargill’s third-quarter earnings were hurt by China’s rejection of U.S. corn shipments containing an unapproved GMO trait.

Minnesota-based Cargill reported net earnings of $319 million, down 28% from a year ago. Revenues were even with a year ago at $32 billion.

One of the world’s largest privately held companies, Cargill does not break out its quarterly results by segment, but it did note that the rejection of U.S. corn shipments “trimmed” its third-quarter profit. China has rejected more than 1 million metric tons of U.S. corn, ostensibly because it detected Syngenta’s MIR 162 corn trait, which it has not approved for import. Many traders believe excess domestic supply is the real reason behind the rejections.

The harsh winter across the U.S. Plains and Canada and resulting disruptions to railway service also hurt earnings, as did a trading loss “related to an unprecedented price spike in U.S. power markets in late January,” Cargill said in a statement.

Cargill reported considerably better results in its Animal Nutrition and Protein segment. It called its earnings in food ingredients “solid” but down from year-ago levels amid lackluster consumer demand.