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(Reuters) -Global grain trader Archer-Daniels-Midland Co on Tuesday reported a higher-than-expected quarterly profit, as the Ukraine crisis exacerbated an already tight supply of essential 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.
Droughts and dryness in the United States, Canada and South America had already pushed food commodity prices to soaring highs.
“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 jumped 53% to $1.05 billion, or $1.86 per share, in the first quarter ended March 31, from a year ago.
Excluding items, the company earned $1.90 per share, beating Wall Street expectations of $1.41, as per Refinitiv data.
Revenue rose by about a quarter to $23.65 billion, above analysts’ average estimate of $20.80 billion.
Reporting by Ruhi Soni in Bengaluru and Karl Plume in Chicago; Editing by Maju Samuel
