Spooky trading day for ADM after the US agricultural trading company reported a smaller-than-expected earnings as its core businesses of selling and processing grains took a hit from a glut in the global grain market.
Their agricultural services unit, ADM’s biggest, more than halved to $87 million in the third quarter ended Sept. 30, falling well below $142 million estimated by JPMorgan analysts.
ADM is currently trading -5% at $40.22.
This is not surprising given the global slump in grain trading with the higher demand for natural ingredients from the public, resulting in higher-margin food production with subdued grain prices.
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