Home / Markets / Markets Analysis / Corn market / Cargill suffers losses trading energy

Cargill suffers losses trading energy

02/20/2014 @ 10:54pm

Cargill Inc. reportedly lost at least $100 million trading in energy markets in recent weeks, and this week replaced a senior trading manager, according to an energy-market publication.

Closely held Cargill declined to comment on the purported trading loss, which a report on SparkSpread.com Thursday said stemmed mostly from trading in mid-Atlantic power markets. The report didn't cite a source for its information about the purported loss, which it said Cargill suffered following massive energy-price moves due to bitter cold temperatures that hit the U.S. in January. The report said David Toole, a physical trading manager for Cargill in North America, left the company Wednesday.

Pete Stoddart, a spokesman for Cargill, said Thursday that the company has appointed Mike Newman as physical trading manager for the unit. He declined to comment on Mr. Toole or on any trading performance.

"We do not provide financial details on our individual business, only at company level," Mr. Stoddart said.

Mr. Toole couldn't immediately be reached for comment.

The Minneapolis-based conglomerate, which provides food, agriculture, financial and industrial products and services, says it buys about $1 billion of energy each year, and began building an internal energy trading operation more than 30 years ago. The company trades in natural gas, coal, power, oil and other energy markets for itself and on behalf of customers.

Last month Cargill, one of the world's largest privately held companies, said that profits rose to $556 million for the fiscal second quarter ended Nov. 30. Revenue fell 7% to $32.9 billion.

Cassandra Sweet contributed to this article.

Write to Jacob Bunge at jacob.bunge@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

February 20, 2014 23:29 ET (04:29 GMT)

DJ Report: Cargill Lost $100 Million On Energy Trading -- Update->copyright

CancelPost Comment
MORE FROM DOW JONES NEWSWIRES more +

More Pig Losses Seen, Smithfield Says By: 05/14/2014 @ 7:55am The swine industry is struggling to contain a deadly virus that's sweeping U.S. hog farms…

Senators Turn Up Heat on Railroad Companies By: 05/13/2014 @ 11:39am Four Midwestern U.S. senators add their voices to a growing chorus of farmers, ethanol producers…

Summary of Friday's WASDE Report By: 05/09/2014 @ 2:53pm The following table is provided as a service to Wall Street Journal subscribers in conjunction…

MEDIA CENTERmore +
This container should display a .swf file. If not, you may need to upgrade your Flash player.
Are We In a Climate Change?