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Chinese grain imports and margins drive ADM profit to 76% in first quarter

For Karl Plume and Arunima Kumar

Apr 27 (Reuters) – Archer Daniels Midland Co reported a 76% rise in first-quarter profit on Tuesday, as robust Chinese import demand and oilseed processing margins boosted the operator and producer’s agribusiness. American grains.

The company estimated “significant year-on-year growth” in 2021, as vaccinations against COVID-19 have accelerated and restrictions due to the pandemic continue to relax in some markets, raising demand for the company’s products, such as cereals. , animal feed and biofuels.

The ADM results offer an initial glimpse into the industry of the world’s largest grain operators as they emerge from a pandemic that had a major impact on food consumption and fuel demand as people cooked more at home. and they avoided unnecessary travel.

The easing of restrictions is expected to benefit agribusiness companies such as ADM and its rivals Bunge Ltd, Cargill Inc and Louis Dreyfus Co, known as the ABCD quartet of major grain operators.

ADM said the company’s big three segments will report more robust results in 2021.

The company said its agricultural services and oilseeds unit posted record first-quarter revenue, despite producer sales and harvests lagging in South America.

Net earnings attributable to AMD rose to $ 689 million, or $ 1.22 per share, in the three months ended March 31; and they compare with 391 million dollars, or 69 cents of dollar by paper, reported in the same period of the previous year.

Quarterly revenue rose 26.2% to $ 18.89 billion, well above Wall Street’s estimates of revenue of $ 16.38 billion, according to IBES data from Refinitiv.

(Reporting by Karl Plume in Chicago and Arunima Kumar in Bengaluru. Edited in Spanish by Marion Giraldo)

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