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ADM, Cargill to Swap Some Midwest Grain Elevators Locations
USAgNet - 07/15/2019

Cargill Inc and Archer Daniels Midland Co have reached a deal to swap some of their grain elevators in the U.S. Midwest in a deal expected to close later this summer, both companies said on Thursday. The deal includes a sale by Cargill of its Mount Vernon and Evansville, Indiana, elevators on the Ohio River to ADM. In return, ADM will sell its Beardstown, Naples and Keithsburg, Illinois, elevators along the Illinois River to Cargill, representatives from both companies said.

ADM and Cargill did not release financial terms of the deal, reports Reuters. Both companies, among the largest grain merchants in the world, said the swap would increase efficiencies and fit both companies' long-term strategies.

ADM and Cargill have been cutting costs and restructuring operations in recent years as a global glut of grain has squeezed margins. A trade war between the United States and China has reduced U.S. agricultural exports to the world's top soybean buyer and eroded profits for the global commodities traders.

The facilities buy grain and soybeans and load river barges bound for the Gulf Coast, home to some of the nation's largest bulk grain export terminals.

The deals would effectively reduce the number of buyers competing for farmers' crops in some areas.

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