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Seaboard milling and commodity trading segment profit stays flat in Q2
Second-quarter operating income totaled $10 million, after higher mill margins were mostly offset by lower trading margins.
Seaboard Corp.’s Commodity Trading and Milling Segment reported operating income that was relatively flat in the second quarter ended July 4, as slightly higher margins at certain mills were largely offset by reduced trading margins, World Grain reports.
For the quarter, operating income was $10 million. The company said operating income was up $3 million versus the same period last year, while first-half operating income fell $21 million to $27 million due in part to higher costs including $20 million of mark-to-market losses on derivative contracts that will continue to fluctuate until product delivery is finalized.
Seaboard also said net sales rose for both the three- and six-month periods year over year. Sales for the second quarter increased $208 million to $1.55 billion, and first-half sales climbed $188 million to $2.76 billion, helped by higher sales volumes of certain commodities and a 1.0% increase in average sales prices.
In its SEC filing dated Aug. 4, the company said it expects positive operating income for the remainder of 2026 for the segment, excluding mark-to-market effects, but cautioned that outcomes are uncertain due to difficulty predicting worldwide commodity price moves and political and economic conditions in countries where the segment operates.