Big Grain Making Big Bucks

Oct 29, 2021

The “ABC’s” of big grain agribiz are reaping the benefits of an increased demand for food and renewable fuels generated by loosening COVID restrictions. Here’s how their profits are stacking up:

ADM: Archer-Daniels-Midland reported earlier this week that its third-quarter earnings more than doubled from the same period last year. And overall revenue? Up over $5B from 2020’s third quarter. Cha-ching.

Bunge: Stockholders for the St. Louis-based commodities trader are also raking in the cash. On Wednesday, Bunge announced it’s upping its full-year adjusted profit outlook to at least $11.50/share. That’s three bucks more than previously predicted.

Cargill: As the largest private company in the U.S., Cargill can legally be a little stingy with earnings numbers. Still, in a press release late this past summer, the 156-year-old company reported FY 2021 net income at nearly $5B—the biggest profit in its history. Not bad.

So what’s causing those wallets to fatten?

Consumption of corn, soy, and meat is up across the board (especially in China), but where they are really crushing it is with soybeans. Vegetable oil demand has skyrocketed, and, as usual, soybeans (and the alphabet of processors) are there to answer the call.