Margarita Louis-Dreyfus, who has a controlling stake in giant commodities trading firm Louis Dreyfus Commodities, the world’s second-largest wheat, corn and sugar trader, tells CNBC: “Russia had a drought, too, so this time, it will be South America, especially Argentina and Brazil.”
With corn prices having rallied almost 50 percent since early June, soybean prices up 30 percent and wheat prices having risen some 40 percent, commodity traders like Louis Dreyfus are in for bumper profits.
On Tuesday, the U.N. warned that “world leaders must take swift, coordinated action to ensure that food price shocks do not turn into a catastrophe that could hurt tens of millions of people in coming months”.
Recent reports suggest that Louis Dreyfus Commodities is gearing up for an IPO to benefit from the boom in commodity prices thanks to supply disruptions and rampant demand from emerging markets. Louis-Dreyfus however says there’s no need for a listing at the moment.