ADM Q2 Profit Falls to 5-Year Low

Major U.S. agricultural producer and trader Archer Daniels Midland (ADM) posted its lowest second-quarter profit in five years as U.S. policy-driven trade turmoil and uncertainty over biofuel credits slowed sales and squeezed trading and crushing margins, Reuters reported.

However, ADM forecasts an improving operating environment for the company by the end of the year as recent U.S. government proposals to increase biofuels use and support for U.S. feedstocks are expected to boost crushing and sales margins.

“We are well positioned to exit 2025 with strong momentum and remain confident in our ability to capture opportunities that may arise from greater domestic policy clarity,” CEO Juan Luciano said in a note.

ADM said uncertainty over U.S. biofuels policy has weakened demand for feedstocks such as corn and soybean oil, but recent changes should support the sector from the fourth quarter onwards. The company also said it is bracing for the impact of U.S. President Donald Trump’s sweeping tariffs to curb most imports and any trade retaliation, which often targets U.S. agricultural products. ADM previously closed a feed plant in Brazil and said it was phasing out its trading operations in China. The company and its agribusiness peers including Bunge and Cargill have also reported profit declines in recent quarters due to tight global grain supplies and declining crushing margins.