ADM boosts profits in tight commodity market

Archer Daniels Midland (ADM) has had a strong first quarter. The commodity trader saw both turnover and net profit rise sharply. The company reports that it expects continued shortages in the raw materials market in the coming years.

ADM posted quarterly revenue growth of nearly $3,7 billion to $23,65 billion. This increase in turnover was mainly driven by the high raw material prices. Net profit (after taxes) increased by about $400 million to $1,05 billion. CEO Juan Luciano is pleased with these results. The tight harvests in South America, the good global demand for raw materials, the company's growth in the nutritionalbranch and good risk management are, according to him, the main reasons for the good results. 

Archer Daniels Midland expects the current tight inventory in the commodities market to continue for years to come. The company points to the disappointing rapeseed harvest in Canada, disappointing harvests in South America and disruptions in the Black Sea region. However, the situation could turn out well for ADM's own profit. Luciano foresees that the financial results for the entire year will exceed those of 2021, without going into more detail.

Steve Wissink

Stef Wissink is an editor at Boerenbusiness and writes about current market developments in the dairy and pig market. He also follows Dutch and international agribusiness.

s.wissink@boerenbusiness. Nl

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