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Commodities Trader Controlled by China’s Cofco Corp. Lost $200 M

By Chen Shen (People's Daily Online)    00:01, October 02, 2015

File photo of press conference in which China’s Cofco Corp bought 51 percent of Nidera BV, the Dutch grain trader, in early 2014.

Around $200 million was lost by a commodities firm majority-owned by China’s Cofco Corp., Wall Street Journal reported.

Cofco Corp bought 51 percent of Nidera BV, the Dutch grain trader, in early 2014. The commodities firm suffered the $200 million loss in biofuels because of the actions of what its chief executive officer described as a “rogue trader.” This trader named Tim Remie was fired in the first quarter of the year.

State-owned Cofco Corp is China’s largest food company. It took control of Nidera to create a global agricultural commodities trading house.

Nidera CEO Ton van der Laan told Bloomberg that the biofuel losses emerged after global prices plunged earlier this year. Biofuels are produced through contemporary biological processes. It can be made from crops including soybeans and corn. Biofuel prices have tracked oil prices lower. Cheaper crude makes biofuels less cost-competitive.

According to Bloomberg, Nidera reported net income of $116.2 million for fiscal 2014 and $72.7 million in 2013. 

(For the latest China news, Please follow People's Daily on Twitter and Facebook)(Editor:Luxiao Zou,Bianji)

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