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nw MN | Cargill having elevators is just a means to their end goal. It's part of their vertical integration. They make most of their money from processing, adding value to what they buy and reselling it. They might double their money on soybeans but they do it by crushing and selling oil and meal. I bet they make 10x more margin selling you feed than when they buy your grain.
There is not as much margin as some people would like to believe selling to china. Last I looked the futures in china were about $13.60/bu. So they have to get it from Chicago halfway around the world for under $4.50 per bushel.
Edited by OlsonKrist 3/22/2019 14:32
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What the elevator makes
