Against the Grain, Traders Go Gluten Free in Hunt for Profit
- Multiyear gluts in major crops erode margins in global markets
- Better prospects seen in niches like tomatoes, processed food
A worker inspects wheat at Nikolaev port in Nikolaev, Ukraine.
Photographer: Vincent Mundy/BloombergThis article is for subscribers only.
There’s so little money in buying and selling wheat, corn and soybeans these days that some traders are turning to obscure markets in desert-grown tomatoes and chickpeas to turn a profit.
Margins for handling the big grain crops have sunk as farmers grew more than the world needs for four years. That’s led firms like Germany’s BayWa AG to seek out niches such as tomatoes and organic grains where returns are higher. Others turned to costlier processed food ingredients or gluten-free products.