"Glencore bemoans lack of ag price volatility" (GLEN.L)

From Agrimoney:

GlencoreXstrata bemoaned a downturn in volatility in ag markets, and opportunities to profit from spreads, as the commodities giant unveiled a return to the red in its agricultural division.

The coal-to-biofuels group cautioned of a "generally subdued environment" in agricultural commodities which had left its farm division with a "slow start" to the year.

The unit reported a $20m operating loss in the first six months of the year, compared with a $103m profit a year before, despite a 70% jump to $16.1bn in revenues, thanks to the acquisition of grain handler Viterra.

The weakness reflected "a lack of old crop carry charges and price volatility" which left GlencoreXstrata's ag traders with "limited arbitrage opportunities".

Operating profits from the division's core crop marketing operations tumbled 87% to $15m during the half, despite an 82% jump to $14.6bn in revenues.

'Grain results were disappointing'

Activities in grains suffered particularly, thanks in part to the "significant" drop in last year's harvest in South Australia, Viterra's Australian stomping ground, cutting volumes for trading....MORE