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Minnesota-Based Commodity Trader Capitalizes on “Special Gains”

Express loan programs in MinnesotaIt’s a mix of oil and water as the proud Minnesota-based global commodity trader, Cargill Inc [CARG.UL] has apparently lost critical revenue, but gained incredible and offsetting the results via special gains.

This means that SBA express loan programs in Minnesota will be slightly affected by the miscarriage of Cargill’s stock trading and oilseed processing.

Numbers Lost and Potentials Earned

The recent financial statement of Cargill provided a stinging downturn trend for eight straight quarters.

According to Reuters, “Minnesota-based Cargill reported net income of $15 million for the fourth quarter ended May 31, compared with a net loss of $51 million a year earlier. Revenue fell 5 percent to $27.1 billion.” But, despite this loss, the company is still in a positive light and the direction as their grand expansion design is yet to come into fruition. Last year, the company invested $3 billion in expanding their facilities and procurements causing rapid growth in the fishing industry, poultry farming and production, cattle feedlots, and a whole lot more new products in the coming quarters.

A Rocky Market for Everyone

The agricultural sector of Minnesota isn’t exclusive to the effects on the below average performance of Cargill. Apparently, rival agricultural commodity provider, such as Archer Daniels Midland Co (ADM.N) and Bunge Ltd (BG.N) have also declared stalemate revenue due to the globally erratic price and more expected decrease caused by the inevitable trade margin downgrades.

Expectations and Planned Comeback

The eight straight quarters of decline for Cargill is a preparation to roll out their new agricultural businesses. The investments they have poured towards expansion and experimentation on global crop supply chains are expected to take effect soon. “We're making progress in terms of positioning ourselves for a future that is meaningfully more profitable,” said Marcel Smits, CFO of Cargill.

Currently, Cargill has $28 billion of equity in the books and $1.6 billion in earnings with a 5% mark, which is bound to improve soon.

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