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Top food merchant Dreyfus sees low cultivation prices in 2017

The conduct of Louis Dreyfus., one of a world’s top-four food-commodities traders, pronounced that rural prices will sojourn low into 2017 as farmers around a universe collect fender crops.

“Prices for wheat, corn, soybean will continue going down,” Dreyfus Chief Executive Officer Gonzalo Ramirez Martiarena pronounced in an talk in Buenos Aires this week. “Corn yields are so good, capability is so high in a US that they keep planting notwithstanding low prices.”

Benchmark prices for wheat fell to a decade low final month, while corn is during levels final seen in 2009 as farmers in pivotal flourishing regions, including a US and Russia, reap fender crops. Low pellet prices have been a bonus for consumers and companies such as Nestle SA and Kellogg Co. though are spiteful farmers and agribusiness including Deere Co., a world’s largest manufacturer of tractors and mix harvesters.

The views of Dreyfus, as a association is known, and a rivals, including Archer-Daniels-Midland, Bunge, and Cargill are closely followed by commodity investors given their trade relations give them discernment into tellurian supply, direct and inventories trends. The 4 are famous as a ABCD of food line for their initials.

Ramirez pronounced that Dreyfus will post a distinction for a initial half of a year when it reports formula after this month. “We are doing fine,” he said.

Agriculture line traders including ADM, Cargill and Wilmar International Ltd. suffered in a initial half on wrong-way bets in soybean markets.

Ramirez is perplexing to solid Dreyfus amid revoke stand prices and reduced cost volatility. He announced skeleton progressing this year to find joint-venture partners for businesses including orange juice, dairy, metals and fertiliser. In March, a closely hold organisation pronounced full-year distinction forsaken 67 per cent to a lowest in a decade.

Louis Dreyfus “may emanate a bond in a future,” Ramirez said. The intensity issue, that would be in further to existent debt securities, would aim to revoke a a company’s borrowing costs, he said.

Billionaire Margarita Louis-Dreyfus, a conduct of a 165-year-old firm, is deliberation offered a minority interest to financial a squeeze of holding association shares from other family members. She controls 81 per cent of a holding association that owns Louis Dreyfus Co. and is a chairwoman.

Joint Ventures.

Ramirez pronounced a association hopes to finalise a sale or joint-venture partner for a agrochemicals and manure operations by year-end. Joint ventures in metals and juices won’t occur until 2018, he said.

Black Sea pellet producers will continue augmenting output, Ramirez predicted, and corn prices will continue descending until U.S. farmers cut planting, he said.

Chicago corn for Dec smoothness fell to $3.1475 a load on Aug 31, a lowest for a most-active agreement given Sep 2009 and reduction than half a record high of $8.49 set in 2012. Wheat futures declined to a 10-year low of $3.8675 a load final month, some-more than 70 per cent revoke than a all-time high reached in 2008. Soybean futures forsaken to a four-month low of $9.37 a load on Sep 1 as a US Department of Agriculture pronounced a country’s farmers will reap a bigger stand than expected.