MINNEAPOLIS, MINNESOTA, US — Ceres Global Ag Corp. experienced its second best second quarter as it focused on expanding its farmer direct-origination and the trading and marketing of core products.

The company posted gross profit for the quarter ended Dec. 31, 2023, of $7.9 million, up from $6.7 million in the previous year. Income from operations was $3.7 million, up from $976,000 last year.

Net income was $2.7 million, up from a loss of $1.12 million a year ago.

“Building on the strong start to the fiscal year last quarter, we continued to focus on our fundamental strategy of maximizing our network of assets and finding creative, capital-efficient methods of expanding our farmer-direct origination,” said Carlos Paz, president and chief executive officer of Ceres. “By remaining steadfast in our strategic approach and skillfully handling the trading and marketing of our core products, we achieved the second-best Q2 in the corporation’s history.”

Paz said joint ventures at Berthold Farmers Elevator and Thief River Falls are showing considerable growth with volumes increasing 11% and 33%, respectively.

“For the second quarter in a row, we achieved record-breaking volumes and gross margins in the Seed Retail and Processing segment,” Paz said. “Implementing operational efficiencies at the Jordan crush plant and our team’s proactive purchasing of soybean volumes drove this success, enhancing operational capacity and efficiency.”

Still, geopolitical uncertainty continues to contribute to market volatility, he said.

“While markets have adjusted to the shifting geopolitical landscape after initial surges in volatility, the potential for escalating geopolitical tensions could lead to renewed market volatility,” he said. “Agricultural markets are currently focused on the prospect of record South American crops and the continued decrease in China’s demand but will soon pivot to spring forecasts for the corn belt, Northern Plains, and Canadian Prairies. Anchored by our ability to quickly identify market dynamics and global crop trends, our team’s expertise will enable the corporation to capitalize on emerging market opportunities as they arise.”

Ceres recently announced a partnership with Mexico’s Grupo Trimex for regenerative agriculture initiatives. The overall goal of the partnership is to deliver transformative production outcomes that enhance grower performance and environmental sustainability.

“This collaboration puts us in a strong position to foster more efficient growing practices and offer tailored regenerative agriculture and supply chain solutions to strategic customers,” Paz said. “The promising prospects of regenerative agriculture, combined with our dedication to efficiently trade and market our core products, maximize the value of our assets, and leverage synergies within our partnerships, position us favorably for the quarters ahead.”

Ceres, together with its affiliated companies, operates 11 locations across Saskatchewan, Manitoba and Ontario in Canada, and Minnesota. These facilities have an aggregate grain and oilseed storage capacity of about 29 million bushels.