And Sanderson and Smithfield Foods, another big meat producer, have both lost money on grain contracts.
Losses on commodity futures included $29 million related to hedges on beef sales and $20 million on grain contracts.
In August 1999, the Commodity Futures Trading Commission accused Cargill of offering grain contracts, called premium offer contracts, that were neither traded on a regulated commodity exchange nor sold by an options merchant registered with the commission, making them illegal.
The company, citing depressed demand coupled with losses on grain contracts, warned analysts yesterday that its earnings in its fiscal fourth quarter, which ends Oct. 2, would probably be 18 cents a share, a far cry from the 33 cents that analysts had expected.
For example, about $200m £128mm) was lost in botched grain contracts and a ministry charged with purchasing government vehicles ended up paying an inflated price of $400,000 £256,0000) per vehicle.
Canada had complained to the UN that its grain supply contract had been cut back after it declined an Iraqi request to pay a trucking fee.
At other times, she dealt with dry legal issues such as grain export contract disputes.
Although the barter system is more inconvenient than payment through cash or credit cards, merchants prefer grain barter contracts because they help minimize the risk of losing money if the peso falls in value before a deal is completed.
Next month, CME Group plans to change the way grain futures contracts are settled by using prices from both the pit and from electronic trading.
Demurrage fees are paid for by grain companies that contract the ships, but that cost is eventually passed on to the farmers, too.The railways blame the weather.
