Despite a dramatic drop in ethanol results, ADM (ADM) still pulled in a very strong quarter.
One thing of note here is the Ag Division. ADM is using the current world weakness to pick up properties at distressed prices. Global demand for food is not going to fall. It may wane in certain areas as diets change based on wealth, ADM is at the cruxt of that demand.
If the US, as President Obama says he is going to do, increases biofuel use, then this division of ADM really has nowhere to go but up.
Given what we have seen this earnings season, growing earnings 24% is just a shareholders dream…
Disclosure (“none” means no position):Long ADM
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