US grain trader The Andersons Inc has renewed its five-year marketing and lease agreement for two of Cargill’s Ohio handling and storage facilities for various grains, including soyabeans.
The agreement would give Cargill the marketing rights to the crops stored in the Cargill-owned facilities in Maumee and Toledo, in addition to those in the adjacent storage facilities owned by The Andersons, according to a 20 June report by World Grain.
“The Andersons, via its merchant staff, may from time to time make direct sales into rail markets for Toledo grain, but only after consultation with the Cargill designated merchant,” the agreement stated.
The Andersons or its affiliates could contact Cargill with an offer if they wanted to purchase certain amounts of grains stored at the Toledo facility.
Additionally, The Andersons could direct trading relationships with customers mutually agreed by the two companies, inclusive of vessel sails of Toledo grain to Canadian receivers and vessel sales of speciality soyabeans to Japanese customers.
Cargill agreed to “use its best efforts” to promote the sale of grains stored in the Toledo facility that had been purchased from The Andersons.
The Maumee facility had an upright storage capacity of 15.8M bushels and flat storage capacity of 2.3M bushels, with a loading capacity of 25,000 bushels/hour, said World Grain.
The Toledo facility had upright storage capacity of 5.9M bushels and loading capacity of 40,000 bushels/hour.