Grain trader ADM raises profit forecast for 2026 on the strength of crush margins and biofuel demand

Archer-Daniels-Midland on Tuesday raised ?its forecast for full-year adjusted profit ?and beat quarterly earnings estimates, citing a strong oilseed processing ?outlook and the removal ?of uncertainty that ?had weighed ?on results in recent quarters following the U.S. biofuel mandate announcement.

Chicago-based company, which had previously forecasted earnings of between $3.60 and $ 4.25 per share in 2026, now expects adjusted earnings to range from $4.15 to $4.70.

U.S. grain costs have increased?since the beginning of the Iran War, prompting a surge in sales of corn and soybeans by farmers who held on to last year's crops due to?low prices.

Following U.S. and Israeli strikes on Iran, farmers across the Midwest moved quickly to ?take advantage of rising prices, selling corn, soybeans and ?wheat from storage bins ?to ethanol plants and major trading houses such as Archer-Daniels-Midland and Bunge.

The conflict has also led to a sharp rise in oil prices, which has boosted demand for biofuel crops and their prices. At the same, disruptions in key fertilizer shipment added further upward pressure to corn prices.

Bunge, the rival company, raised its profit forecast for the full year in April. It cited strong oil seed?processing margins as well as an improved outlook on biofuel demand after?the U.S.?raised their biofuel blending mandate.

ADM reported an adjusted profit per share of 71 cents for the three months ending March 31 compared to a 66-cent average analyst estimate, according to LSEG data.

The operating profit of the largest segment in the company, 'agricultural services and oilseeds,' rose by?25.7% to $200 million during the quarter reported. The division includes global crop trading, storage and transportation, and oilseeds processing operations. (Reporting and editing by Shash Kuber in Bengaluru, Katha Kalia)

(source: Reuters)