{"id":1090,"date":"2019-02-06T14:58:13","date_gmt":"2019-02-06T14:58:13","guid":{"rendered":"http:\/\/commodityconversations.com\/wordpress2\/?p=1090"},"modified":"2019-02-06T14:58:17","modified_gmt":"2019-02-06T14:58:17","slug":"agricensus-report-9","status":"publish","type":"post","link":"https:\/\/commodityconversations.com\/wordpress2\/2019\/02\/06\/agricensus-report-9\/","title":{"rendered":"AgriCensus Report"},"content":{"rendered":"\n

ADM Q4 profits slump despite surging crush margins<\/h3>\n\n\n\n

Agribusiness major Archer Daniels Midland posted a 60% slump in \nprofits in the fourth quarter of last year, falling from earnings per \nshare of 139 cents in Q4 2017 to just 55 cents in Q4 2018.<\/p>\n\n\n\n

ADM reported earnings per share of 88 cents on revenue of $15.95 \nbillion for the fourth quarter last year, falling short of analyst \nestimates of 92 cents and $16.8 billion.<\/p>\n\n\n\n

The results came despite soaring profits in its oilseeds and \norigination business, which more than doubled to $432 million from $201 \nmillion in the fourth quarter last year as the company cashed in on low \nsoybean prices in the US and high global soymeal prices.<\/p>\n\n\n\n

Lower revenues from the company\u2019s origination business, which \nincludes grain trading and handling, hit profits after China slapped a \ntax on US soybeans, seeing a collapse in trading volumes in the US.<\/p>\n\n\n\n

\u201cLooking forward, the crush environment in 2019 will not be as \nspectacular as 2018. Given global demand and the strength we have \noutside China this business will maintain crush margins well above \naverage over the last five years,\u201d Juan Luciano, ADM CEO, told investors\n Tuesday.<\/p>\n\n\n\n

Operating profit in the company\u2019s carbohydrate solutions business, \nwhich includes its biofuels production, fell 31% due to poor ethanol \nmargins amid record US supply.<\/p>\n\n\n\n

ADM has been investing downstream in the feed chain in an attempt to gain a foothold in higher margin businesses.<\/p>\n\n\n\n

In terms of soybean crush margins, ADM said it had locked in gross \nmargins of $30-35\/mt at its crushing facilities in the US with high \nutilisation rates. Meanwhile, in canola, margins were in the region of \n$42-45\/mt.<\/p>\n\n\n\n

In terms of rapeseed crush in Europe, the company said meal \nreplacement from China as well as good demand in Europe had kept meal \nprices high, leaving margins at around $35\/mt.<\/p>\n\n\n\n

Finally, in Brazil it said its crush facilities at ports had locked in margins of $10-15\/mt and $25-30\/mt gross margins at \u201cfacilities that are geared towards the domestic market\u201d.<\/p>\n\n\n\n

\"This<\/figure>\n\n\n\n
AgriCensus Prices<\/strong><\/a>
Over 500 daily Spot Marker and Forward Curve price assessments for wheat, corn, soy, barley, vegoils, meals and seeds.<\/td>		Subscribe now<\/strong><\/a><\/td><\/tr><\/tbody><\/table>\n\n\n\n

Subscribe to Blog via Email<\/h2>\n\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t\t\t\t

Enter your email address to subscribe to this blog and receive notifications of new posts by email.<\/p>\n<\/div>\n\t\t\t\t\t\t\t\t\t\t

\n\t\t\t\t\t\t

\n\t\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t