CHICAGO — Agricultural commodities trader Archer-Daniels-Midland Co. (ADM) expects a groundswell of export demand in the second half of 2020, led by robust purchases by China, as the coronavirus pandemic fuels food security concerns around the world, the company said Thursday.
Ample US supplies of crops like soybeans, corn and wheat could help propel exports to record levels in the fourth quarter, Chief Executive Juan Luciano said during a quarterly call with analysts.
After record export volumes from South American facilities helped ADM deliver a stronger-than-expected second-quarter profit, Brazilian soy stocks are nearly depleted, Mr. Luciano said. The United States will be the prime supplier to the world, he added.
“The US export market is setting up… for very good times on very solid global demand and competitive prices,” Mr. Luciano said. “We do expect large programs for corn, soybeans… as well as wheat and soybean meal for Q4.”
Global agribusinesses like ADM and rival Bunge Ltd are among the companies that have fared better than expected during the pandemic despite food supply chain disruptions and volatile markets.
Bunge raised its full-year outlook after reporting a stronger-than-expected quarterly profit on Wednesday following record Brazilian crop exports.
Both companies have reported minimal disruptions to operations due to COVID-19 (coronavirus disease 2019). — Reuters