Archer-Daniels-Midland reported a 53% jump in its first-quarter profit on Tuesday, as the global grain trader was helped by higher demand and tight crop supply.
Grain traders have seen increased demand for commodities being shipped around the world after the Russia-Ukraine war disrupted shipments from the Black Sea region.
The two warring nations supply 29% of the world’s wheat exports, a fifth of the corn traded globally and around 80% of the sunflower oil.
ADM shares rose 33.5% during the first quarter after food commodity prices soared.
“Looking ahead, we expect reduced crop supply – caused by the poor Canadian rapeseed crop, lower South American harvests and now disruptions in the Black Sea region – will drive continued tightening in global grain markets over the next few years. years,” said the company’s CEO, Juan Luciano, in a statement.
Net income attributable to ADM was $1.05 billion, or $1.86 per share, for the three months ended March 31, compared to $689 million, or $1.22 per share, one year.
Source: CNN Brasil
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