Margins made by processing oilseeds in China are finally turning positive, a sign of improving crop demand that could help boost futures markets, Bunge Ltd.’s Chief Executive Officer Greg Heckman said, reports Bloobmerg.
The improvement is a turnaround from earlier this year when tepid demand in China weighed on agricultural trading in Chicago. As the world’s largest commodities importer starts to loosen some COVID-19 lockdowns, demand for grain and oilseeds is expected to rebound and improve margins for crop processors like Bunge, Cargill Inc. and Archer-Daniels-Midland Co.
“It is hard to imagine demand can get worse, and the lighter lockdowns are good for demand,” Heckman said in a presentation Tuesday to investors. “We are starting to see spot margins improving.”
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