MERRIAM, KANSAS, US — Seaboard Corp. posted operating income of $34 million in its Commodity Trading and Milling (CT&M) segment during the second quarter ended June 29, up 100% from $17 million in the same quarter a year ago.

Seaboard said the increase in operating income primarily reflected the decrease of $13 million in mark-to-market losses on derivative contracts. Had Seaboard not applied mark-to-market accounting to its derivative instruments, operating income in the segment would have been $35 million, up from $31 million in the same period a year ago.

Net sales for the segment during the most recent quarter totaled $1.13 billion, down 15% from $1.34 billion in the same period a year ago. The decrease primarily reflected lower average sales prices of commodities sold, Seaboard said.

In a July 30 filing with the US Securities and Exchange Commission, Seaboard said it invested $237 million in property, plant and equipment in the first half of fiscal 2024, including biogas recovery projects in the Pork segment and installment payments on vessels under construction in the Marine segment. For the remainder of 2024, Seaboard said management has budgeted capital expenditures totaling $320 million.

Overall, Seaboard in the second quarter posted net income of $61 million, equal to $62.82 per share on the common stock, up 17% from $52 million, or $44.80 per share, in the same period a year ago. Net sales were $2.21 billion, down 8% from $2.39 billion in the same period a year ago.