As commodity prices have continued to fall through the past year, CHS more than covered the gap with increased grain shipments.
Those lower corn, soy and wheat prices are attracting higher demand, the Inver Grove Heights-based cooperative reported as it grew quarterly ag profits 39% in the past year.
The acquisition of West Central Ag Services and a standout spring selling crop inputs and services also boosted CHS’ ag business.
”CHS was well-positioned to meet our owners’ planting needs with products, services and local expertise during the favorable spring weather, resulting in a strong third quarter for our agronomy and retail businesses," CHS Chief Executive Jay Debertin said in a statement Wednesday.
Overall, the picture was mixed, as a major energy sector loss contributed to a 21% profit decline in the spring quarter.
CHS, the nation’s largest agricultural cooperative, reported nearly $9.8 billion in revenue, slightly ahead of last year, and a $232 million profit for the quarter that ended in May.
Maintenance at the company’s Kansas oil refinery, as well as a supply glut and low prices, contributed to the $50 million energy loss, CHS reported.
Ag commodity prices remain near a five-year low after hitting record highs during the pandemic and amid supply-chain challenges of recent years. The outlook for the rest of this year, and into next year, is more of the same.
