Corn processor, ADM misses estimates

May 02, 2013

World’s largest corn processor misses estimates after drought hurts U.S. crops

Archer-Daniels-Midland Co. (ADM), the leading corn processor worldwide, reported its Q1 profit, which missed analysts’ estimates as U.S. crop supplies declined after last year’s drought. Net income fell to $269 million (41 cents a share), from $399 million (60 cents a share), a year earlier.

Chairman and Chief Executive Officer Patricia Woertz said that this was a challenging quarter, with agricultural services negatively impacted by last summer’s U.S. drought.

ADM processes grains like corn – making it into ethanol and sweeteners, and soybeans into animal feed and oil. The smaller volumes of crops have raised production costs. The drought was deemed the worst in 50 years – since the 1940s. U.S.

Video: Is China Buying US Soybeans + USDA Nov 14th Crop Report could be “Game Changing”

After a week of a U.S./China trade truce, markets/trade is skeptical that we have not seen a signed agreement nor heard much from China or seen any details. There are rumors that China is buying soybean futures & not the physical. Trust in Trump?
12 MMT of U.S. soybean purchases by China by year-end is better than 0 but we all need to give it more time and give it a chance to unfold. China did lower the tariffs on Ag and is buying U.S. wheat and sorghum.
U.S. supreme court could rule against Trumps tariffs, but the Trump administration does have a plan B.
U.S. government shutdown is now the longest in history at 38 days.
But despite a U.S. government shutdown we will be getting a USDA November crop report next Friday and it could be “game changing.” If the USDA provides a bullish surprise with lower U.S. corn and soybean yields and ending stocks that are lower than expected both corn and soybean futures will break out above their ceilings at $4.35/bu and $11.35/bu respectively.
The funds continued their selling in live and feeder cattle futures on continued fears that the Trump administration want to lower U.S. beef prices. The fundamentals have not changed, only market psychology has.
Stocks markets continue to worry about a weak U.S. job market, but you can blame ChatGPT for that. In the future, we will have a more efficient, productive and growing economy with a higher unemployment rate until we have more skilled AI workers.
After 34 new record highs in the S & P 500 and 124 new records in the NASDAQ in 2025 we are back to a correction and investor profit taking as AI valuations may have gotten too stretched near-term ahead of NVDA’s 3rd quarter earnings announcement on Nov. 19th. But this is not an AI bubble.
75% of Tesla shareholders approved a $1 trillion pay package for Elon Musk!
It has rained in South America in the last 7 days, but both the American and European models agree that Central Brazil remains dry in the next 14-days!

ADM to acquire GrainCorp

EU votes to ban pesticides linked to bee deaths