Archer Daniels Midland talks up Brazil, as commodities boom fails to improve profits in earnings surprise

In Illinois, Archer Daniels Midland announced dismal financial results for the quarter ending June 30, and said that it was not optimistic about US ethanol expansion because of financing issues and construction costs. However, the company confirmed that it was in talks with several Brazilian com-panies regarding potential investments in sugarcane ethanol production.

The company said that its profits from oilseed, corn processing and agricultural services reached a record $3.4 billion last year and that ethanol profits were strong, and said that it continued to see a strong market for ethanol in the US even if the Renewable Fuel Standard was partially waived by the EPA, with ADM executive VP John Rice advising that  “We still do not see the ethanol demand slowing down at all, just because it is very price competitive.”

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