MINNEAPOLIS, MINNESOTA, US — Market volatility coupled with extreme weather on the back of the La Niña phenomenon led to a third-quarter loss at Ceres Global Ag Corp.

Ceres sustained a loss of $553,000 in the third quarter ended March 31, which compared with income of $912,000, equal to 3¢ per share on the common stock, in the same period a year ago. Adjusted net income totaled 410,000, which was down from $2.46 million in the same period a year ago. Net revenue totaled $287.91 million, up 6.8% from $269.63 million a year ago.

For the nine months ended March 31, Ceres suffered a loss of $5.41 million, which compared with income of $13.71 million, or 45¢ per share, in the same period a year ago. Adjusted net income was $1.37 million, which compared with $16.8 million. During the third quarter Ceres completed the sale of its Port Colborne facility for $4 million and recognized a gain on the sale of $1.2 million.

Net revenue totaled $831.05 million in the third quarter, up 6.1% from $782.79 million.

“This quarter, the business operations performed very well despite continued market volatility,” Carlos Esteban Paz, president and chief executive officer, said during a May 12 conference call with investment analysts. “February 24 marked the one-year anniversary of the conflict in Ukraine, a conflict that has had many humanitarian and economic impacts. For agricultural markets, particularly for Ceres, for northern spring wheat, durum and canola markets, the war has disrupted production and exports, causing uncertainty regarding supply. While Ukraine has shipped significantly more grain over the last several months. Russia’s announcement that we will not support the Black Sea grain deal beyond (May 18) presents great uncertainty for agricultural markets.

“Adding to this volatility was the extreme weather readings around the globe this year on the back of La Niña phenomenon. While Brazil yielded record soybean crops, Argentinean bean, corn and wheat crops were devastated by droughts, resulting in an extended US export season that kept rail freight values elevated. Continued dryness in the Western US Plains is also expected to impact the already small Kansas wheat crop.”

Despite the unfavorable macro conditions, Paz said Ceres was able to effectively utilize its asset network to handle 20% higher volumes compared with the same period a year ago. He credited the performance of Berthold Farmers Elevator, LLC (BFE), with some of the success. Ceres’ wholly owned subsidiary, Riverland Ag Corp., purchased Columbia Grain International’s 50% membership interest in Berthold last summer.

“The venture continues to exceed our expectations,” he said. “Volumes handled at BFE increased by 15% compared to last year. As being incorporated into our network of assets, this joint venture has continued to create synergies that provide long-term value for the corporation.”

Meanwhile, at Farmers Grain LLC, Thief River Falls, Minnesota, US, Paz said the company was able to overcome significant rail freight delays to deliver higher volumes than the prior year.

In the company’s seed and processing segment, soybean crush volumes were higher than the same quarter a year ago, reflecting improvements in operational efficiency and effective merchandising, Paz said.

“While demand for soy oil was low this quarter due to operational issues across the US renewable diesel refineries, the high demand for soybean meal more than made up for the shortfall in oil, resulting in solid margins,” he said.