ADM’s Q3 profits fall to two-year low on strong dollar’s impacts on ethanol exports

In Illinois, Archer Daniels Midland’s third quarter profits have been hit hard—by about two-thirds to $252 million, the lowest seen in two years, as a strong dollar makes for poor economics to export its ethanol and grain. Even with higher gas consumption across the US thanks to cheap oil, which should have led to higher ethanol blending demand and therefore good returns for the company, cheap corn has also led to strong production levels have in turn become high stocks.