reports
- Seth Goldstein
- CFA
Weather Delays and Reduced Supply Highlight Our 1Q Earnings Takeaways ...
Unfavorable weather weighed on first-quarter results for many of the agriculture companies we cover, as a delayed start to the U.S. planting season reduced sales across every crop input category. While seed sales should bounce back in the second quarter, we expect less total nitrogen and crop chemicals will be used in 2018 as the late start reduces midseason applications. However, stronger potash demand outside of North America should more than offset stagnant or slightly reduced demand in North...
- Seth Goldstein
- CFA
Favorable Merchandising Outlook Outweighs Near-Term Impact of Chinese ...
Archer Daniels Midland reported mixed first-quarter results as higher oilseeds profits were partially offset by reduced transportation profits in the origination segment. Companywide operating profit grew nearly 2% year on year to $547 million. Although ADM will face some near-term headwinds relating to China’s proposed tariffs on U.S. crops, including soybeans and sorghum, the current favorable grain merchandising conditions will outweigh the impact of the tariffs. While we’ve made some sli...
- Seth Goldstein
- CFA
Archer Daniels Midland has a solid position in a business where high r...
China has announced a set of proposed retaliatory tariffs against the United States, including a 25% import tariff on U.S. corn, cotton, and soybeans. If the tariffs are finalized, they would negatively affect the competitiveness of U.S. farmers. On the other side of the coin, the tariffs would benefit farmers in Brazil and Argentina, who could export their crops to China at a lower all-in price than their U.S. counterparts. Over the long term, we expect the tariffs to drive a modest shift in cr...
- Seth Goldstein
- CFA
China’s Proposed Agricultural Tariffs Should Benefit Grain Merchandi...
China has announced a set of proposed retaliatory tariffs against the United States, including a 25% import tariff on U.S. corn, cotton, and soybeans. If the tariffs are finalized, they would negatively affect the competitiveness of U.S. farmers. On the other side of the coin, the tariffs would benefit farmers in Brazil and Argentina, who could export their crops to China at a lower all-in price than their U.S. counterparts. Over the long term, we expect the tariffs to drive a modest shift in cr...
- Seth Goldstein
- CFA
ADM Reports Improved Trading Results; We Maintain Our $44 Fair Value E...
Archer Daniels Midland operating profit slipped 1% to $464 million in the second quarter, as compressed oilseeds margins offset improved trading desk results. The company’s results were in line with our expectations and, as such, our $44 per share fair value estimate is unchanged. We are also maintaining our no-moat rating. In the agricultural services segment operating profit increased to $109 million. Strong trading desk performance buoyed operating margins to 1.9% for the quarter, versus 1....
Unfortunately, this report is not available for the investor type or country you selected.
Report is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.