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National & World Ag News Headlines |
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ADM Profit Up Nearly 14% on Strong Biofuel Demand
USAgNet - 01/26/2022
Global grain trader ADM reported a jump of nearly 14% in fourth-quarter earnings today (Jan. 25) as rising biofuel demand and strong ethanol margins helped to boost operating profit at its carbohydrate solutions division. High energy and grain costs, however,
clipped earnings at the corn-processing unit, as well as its core ag services and oilseeds segment, where operating profit fell from the same quarter a year earlier.
According to Reuters, shares were flat in pre-margin trading. ADM's results offer a look into how the world's biggest grain traders are weathering the shifts in food and fuel demand triggered by the pandemic and soaring inflation.
Meanwhile, the company and rival agribusinesses Bunge Ltd, Cargill Inc, and Louis Dreyfus Co together known as the "ABCD quartet" of grain trading giants, have benefited from rising demand for food and renewable fuel as economies reopen. But surging
prices for the grain and oilseeds ADM buys, sells, processes, and ships around the globe have presented a challenge.
ADM said earnings in ag services and oilseeds, its largest unit by revenue, were propelled by strong demand for soymeal and vegetable oil.
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