(Reuters) -Archer-Daniels-Midland Co on Tuesday reported a 53% jump in first-quarter profit, as the global grain trader was helped by higher demand and tight supplies of crops.
Grains merchants have seen heightened demand for the crops they ship around the world after the Russia-Ukraine war cut off shipments from the Black Sea breadbasket region.
The two nations supply 29% of the world’s wheat exports, a fifth of globally traded corn and around 80% of sunflower oil.
ADM’s stock grew 33.5% during the first quarter after food commodity prices soared, making ADM the 19th-biggest gainer on the S&P 500 Index.
“Looking forward, we expect reduced crop supplies – caused by the weak Canadian canola crop, the short South American crops, and now the disruptions in the Black Sea region – to drive continued tightness in global grain markets for the next few years,” Chief Executive Officer Juan Luciano said in a statement.
Net earnings attributable to ADM were $1.05 billion, or $1.86 per share, in the three months ended March 31, compared with $689 million, or $1.22 per share, a year ago.
(Reporting by Ruhi Soni in Bengaluru and Karl Plume in Chicago; Editing by Maju Samuel)
