Viterra (Glencore) and Bunge are in talks, considering merging. Reuters report that their information confirms the talks are in early stages and are not yet predicting that this is a done deal. Bunge is valued at US$13.4Bn. Recent years have offered grain trading company huge profits, many seeing year on year profit increases of more than 30%. Cashed upped merchants buy the competition as a rule, the big get bigger.
When Viterra bought US based Gavilon off Marubeni last year it gave Viterra access to both US and S.American facilities. A merger with Bunge would see Viterra increase this market access with additional storage and export capability.
This isn’t the first time Viterra (Glencore) has had a crack buying at Bunge. In 2017 they failed to pull off a buyout. Bunge shares surged 10% on news of the possible merger. The big attraction to Bunge is access to the world vege oil market. Bunge has focused on this facet of the grains market in recent years and are now one of the biggest processor and exporter of vege oils in the world. An acquisition of Bunge would place Viterra (Glencore) in the top 4 of global grain giants along aside Cargill, ADM, Dreyfus and Bunge.

US wheat futures markets reflected the mixed bag of weather conditions for different regions in the USA today. The HRW and Spring Wheat market broke away yet against from the soft red winter wheat market. Conditions in the SRWW regions are perfect in the US. Some producers are talking record yields in Illinois. The SRWW production is likely to keep a cap on corn values in the US Midwest too. Offering cattle producers an alternative to corn.
Hard red wheat values will be capped by the cost of replacement grain either from Canada, US spring wheat or further imports from Europe. This should continue to limit the availability of premium wheat out of the US PNW into Asia, potentially widening basis for Aussie wheat into these markets.