Cargill CEO Urges Commodity Trading Sector to Embrace Transparency

Apr 16, 2013

U.S.-based Cargill, the world’s largest agricultural trading house – chief executive Greg Page recently spoke at the FIT Global Commodities Summit in Switzerland. Page’s key message was this: “price is one of the most powerful signals on earth, and to be a communicator or disseminator of that price means we must accept huge responsibility.”

Cargill’s own Greg Page urges the commodities industry that trading houses must embrace ethical and transparent business practices or could risk losing public trust. “There are lessons to be learnt from the banking sector, and the forced legislation it prompted and is continuing to prompt,” noted Page.

"The term “trading” has become wrapped-up and confused in the public perception with speculation, hoarding, market fixing, monopolies, cartels and bad practices,” explains Page. Page also made a clear distinction between volatility and turbulence, noting that “outsize price reactions” can have consequences for consumer goods such as food.

While Page stopped short for calling for regulation he said "Better than self-regulation, is the self-realization that our long-term best interests - and society's - are served by good behavior and good transparency." Regulation is one of the hot topics being discussed at the conference.

Video: Will the 2025 USDA December Crop Report Be a Market Mover/Surprise?

Historically, the USDA December crop report is a non-event or another dud report as the USDA reserves any final supply changes to the final report in January of the following year in this case 2026. But after the longest U.S. government shutdown in history at 43 days and no October crop report will they provide more data/surprise and make an exception?
Our China U.S. soybean purchase tracker is now at 26.6% or a total of 3.2 mmt but for traders it’s taking too long to unfold.
The final Stats Canada production report was bearish canola and wheat projection a record crop in both (it adds to the global glut of supplies) and bullish local corn and soybean prices in Ontario/Quebec thanks to a drought. It will not help the fund flow short-term, the USDA may need to offset it?
A U.S. Fed interest rate cut of another 25-basis point next Wednesday (probability 87.1%) could help fund flow and sentiment in stock and ag commodities into year end.
More inflows into Bitcoin this past week saw prices rebound back above 90,000 with support at 82,000 and resistance at 96,000.
A V-shaped bottom in cattle suggest the lows are in after Mexico reported another new world screwworm case. Lower weights, seasonal demand and higher U.S. beef select/choice values with a continued closure of the Mexican border to cattle will result in a resumption of higher cattle futures into yearend.
Australia is expected to produce its 3rd largest wheat crop ever at 36 mmt adding to the global glut of supplies.
Reports of ASF in hogs in Spain the largest pork exporter in Europe could see the U.S. win more pork export business long-term.
If the rains verify into next week of 3-5 inches for Brazil it would go a long way to fixing the dry regions from the last 2-months, but the European weather model has been wrong for the past 2-months!
Natural gas futures are surging to the 3rd price count as frigid hold temps set in.
CDN $ is also surging to end the week on a very resilient economy and better employment numbers suggesting no interest rate cuts next week.
Finally, the CFTC report showed funds were net buyers of soybeans but sellers of corn, canola and wheat. In real time the funds have gone back to selling as they take some profits.