Second quarter results in grain origination , oilseed processing and distribution were significantly improved from levels seen in the preceding three quarters , although lower than an exceptionally strong period last year , which included a $ 117 million credit resulting from a favorable ruling related to certain transactional taxes in Brazil . Grain origination and distribution benefitted from strong soybean demand from China . Oilseed processing results were supported by solid margins and improved meal demand as customers rebuilt depleted inventory pipelines . Risk management strategies worked well during a volatile period . Higher volume in the quarter was due to increased grain origination and distribution in Europe , as well as higher sugar merchandising and oilseed processing in Eastern Europe and Asia , reflecting our investments to expand in these high growth areas . Foreign exchange gains of $ 138 million from U.S. dollar denominated financing of working capital , primarily in our Brazilian subsidiary , resulting from the impact of a 19 % appreciation of the real against the U.S. dollar during the quarter , were offset by foreign exchange losses on valuations of commodity inventories included in gross profit .