Global bumper harvests, a downturn in crop markets, and slowing demand for farm equipment are shrinking profits and lowering the future outlooks for some of the world’s biggest companies.
Farm Policy News says St. Louis-based Bunge posted earnings of $1.73 a share in the second quarter, the lowest since the start of COVID-19 in 2020. The results also missed analyst expectations by as much as ten percent. Also, global grain merchants ADM Company shares dropped two percent after the company missed Wall Street expectations for second-quarter profits, which were hit by lower soy crush margins and fading demand for U.S. crops. The company’s Ag Services and Oilseeds branch suffered a 56 percent year-on-year plunge in quarterly operating profits due to multiple challenges.
On the equipment side, farm and construction maker CNH Industrial lowered its full-year profit forecast for the second time as slowing tractor and combine demand mutes recovery hopes.
