Cargill is reportedly in discussions to offload its metals trading arm to Macquarie Group in a move that would further tilt the commodities giant toward its food and agriculture roots. 

Sources familiar with the matter told Reuters that the negotiations have not been made public and the deal could still fall apart. This is not the first time Macquarie has conducted business with Cargill. The company sold its petroleum operations to the Australian firm in 2017.

Cargill pulled back from physical steel trading in China in 2024 after demand weakened amid a drawn-out slump in the country's property market. That same year, the company reorganized from five business groups into three: food, agriculture and trading, plus a specialized portfolio.

“At our core, we have always been a food and ag company,” Brian Sikes said in a 2024 internal memo reviewed by Reuters. 

The timing coincides with a cloudier outlook for iron ore prices. Reuters noted that softer demand from China, combined with the growing influence of state-backed buyer China Mineral Resources Group, has dampened the price volatility that traders typically rely on.

Cargill's metals business is headquartered in Singapore, and provides "value-adding services and solutions along the global ferrous supply chain. Cargill Metals operates over 25 ports and more than 20 warehouses globally. 

Each year, the business handles approximately 60 million to 70 million metric tons of iron ore a year, and 4 million tons of physical steel globally, according to Cargill's website.

Earlier this year, Cargill opened a new production plant in the Netherlands, offering dependable access to FR3 fluid, in an effort to “strengthen supply availability, simplify logistics, and improve responsiveness amid a growing demand from electrical infrastructure expansion, data centers, renewable energy, and battery storage,” the company noted in a press release.

The company has also recently developed an artificial intelligence (AI) system called CarVe to improve efficiency and increase output amid rising beef costs nationwide. 

AI is also being deployed across the company’s logistics and agricultural businesses. In its trucking operations, the technology helps predict wait times at processing plants and streamline deliveries. 

In Brazil, AI is being used to optimize grain-mixing processes, while elsewhere it assists with plant identification, meat inspection, and the automation of tasks within processing facilities. The company is also leveraging AI to develop more precise animal feed formulations.

Beyond these applications, Cargill said it is “carefully exploring” the potential of generative AI.

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