October 27, 2014
Cofco unit China Agri-Industries to report loss of US$168 million
China Agri-Industries Holdings Ltd. , a Hong Kong-listed unit of Cofco Corp., expects to book a loss of HKD 1.3 billion (US$167.6 million) due to falling soy prices in the first nine months, the Wall Street Journal reports.
The poor performance is a sign of how weak global commodity markets are taking their toll on a sector widely considered as a pillar of strong Chinese demand.
China Agri-Industriesattributed the loss to the high cost of soy that the company and its subsidiaries bought in the first half of the year. It said it had to process and sell the soy in the second half even as a broad slowdown in Chinese economic growth and prospects of bumper crops led to a sharp fall in the oilseed's prices globally.
As soybean prices fell, the value of soy-related products tracked downward. Between May and September this year, soymeal prices on the Dalian Commodity Exchange fell 23%.