Global agribusiness companies Archer-Daniels-Midland and Bunge likely turned in solid earnings in the third quarter despite weeks of suspended shipping caused by Hurricane Ida.
Industry analysts expect good earnings numbers when the companies release their respective reports this week.
Both companies benefited from good margins in corn and oilseed processing and readily available grain supplies to trade, process, and ship overseas as higher prices compelled farmers to sell more of their crops.
Long-term prospects for both companies got a boost from surging demand for vegetable oil for use in manufacturing renewable fuels.
One analyst told Reuters that the current environment has higher prices that aren’t elevated enough to destroy demand.
As people turn their attention to 2022, export demand is still high for U.S. grains.
Export shipments from the Louisiana Gulf Coast, the biggest grain hub in the U.S., were halted for weeks after Hurricane Ida slammed into the area on August 29.
The storm knocked out power to ADM and Bunge terminals and caused minor damage.
The outage was almost a month long at the start of the U.S. corn and soy harvest and peak export season.
Analysts say it probably hit ADM a little harder due to its larger U.S. footprint.
(Story Courtesy of NAFB News Service)