ADM Shows There’s Money to be Made in Trade War
Company has been able to find customers outside of China
Archer-Daniels-Midland Co. (ADM) is shaping up as one of the few crop-trading houses to benefit from President Donald Trump’s trade war with China, reports Bloomberg.
On Tuesday, the Chicago-based firm reported better-than-expected earnings for a fourth straight quarter, with soybean crushing the main driver of growth. ADM also said it’s been able to find customers outside of China, especially for corn, after Beijing slapped a 25% tariff on U.S. soybeans earlier this year.
ADM is successfully navigating markets battered by both the the trade war and droughts from Argentina to Russia. Rival Bunge Ltd. cut its guidance for the year last week, while Louis Dreyfus Co. blamed a steep drop in first-half profit on a $65 million negative mark-to-market valuation of soy-crushing hedges.
Read the full report at Bloomberg.