Crop trader ADM reopens key U.S. grain terminal after delays
Archer-Daniels-Midland Co. has reopened a key U.S. grain-export terminal after construction delays, a move that could help boost profits for one of the world’s largest agricultural commodity traders.
The Reserve terminal in Louisiana, one of the three ADM owns in the Gulf of Mexico region, has now reopened, the Chicago-based company said in a statement in response to questions from Bloomberg on Monday. The facility was brought back online earlier than the company expected in June, when it estimated works would only be completed in early 2021.
“We’re excited to have Reserve back to help support an extremely strong U.S. export program,” the company said.
The return to operations could help increase profits for ADM as grain export margins from American ports have surged due to Chinese buying. The Asian nation has already purchased a record amount of corn, while sales of U.S. soybeans are running at their fastest pace in data going back to 1991.
In June, ADM said it had two other elevators in the region as well as facilities in Texas and the Pacific Northwest to help it manage export volumes.
Greg Morris, president of the company’s Ag Services and oilseeds unit, said at an investment conference last month that the U.S. was in a great position to have its largest export program ever in the fourth quarter. He added that margins were “great” and that the pace of exports was set to continue.
“And even despite five named storms hitting New Orleans, the industry continues to run very well down there,” Morris said. “The volumes that we’ve been able to put through the facilities has been fantastic.”
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