Cargill expects international grain markets to remain oversupplied.
The company’s CEO told Reuters recently that the oversupply will remain “for a long time” due to bountiful harvests and an increase of crops in storage.
Global corn, wheat and soybean inventories have increased over the last four years in the longest stretch of gains since the late 1990s, according to the U.S. Department of Agriculture. Meanwhile, world grain and oilseed stocks are up 48 percent since 2012, compared with production growth of 18 percent and consumption growth of 17 percent over the same period.
Cargill CEO David MacLennan added: “I don’t see the clearing of excess supply or much volatility to up commodity and grain prices in the near future.”