Grain trader ADM’s quarterly profit tops estimates

(Reuters) -Archer-Daniels-Midland beat Wall Street expectations for second-quarter profit on Tuesday, as the grain trader and processor benefited from tight global supplies and robust demand for grains and oilseeds.

ADM and its agribusiness peers, including Bunge (NYSE:), Cargill and Louis Dreyfus, make money by processing, trading and shipping crops around the world. The supply chain middlemen tend to thrive when crises such as droughts or war trigger shortages.

“South American origination results were higher year-over-year, as the team delivered record volumes and higher margins on strong export demand, leveraging our strategic investments in port capacity to capitalize on the record Brazilian soybean crop,” the company said in a statement.

ADM posted adjusted profit of $1.89 per share for the three months ended June 30, compared with analysts’ average estimate of $1.60 per share, according to Refinitiv data.

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