Archer Daniels Midland (NYSE: ADM) stock rose 6.21 percent today, from $32.67 to $34.70. The increase followed the release of the company’s quarter two financial results.
According to the report, ADM had a 30 percent increase in their EPS, an unexpected rise partially due to reduced global grain supplies. Some are still concerned that ADM might miss expectations this year if the ethanol fuel market doesn’t grow, but new FDA regulations regarding the quality of food used by manufacturers could give them another boost.
ADM competitors Bunge (NYSE: BG) and Corn Products International (NYSE: CPO) also rose today. BG gained .91 percent as it rose from $68.07 to $68.69 and CPO rose 1.71 percent from $46.13 to $46.92. BG is scheduled to release their financial results on February 10th while CPO will be announcing theirs on February 17th. In the mean time, they may continue to benefit from the positive announcement by ADM, or BG’s history of missed expectations could come back to bite them.
Covestor models with exposure to this sector include: Anticitrade, Deep Fundamental Analysis, International Hedged Equity, and Long-Short Generalist.
*Prices and charts courtesy of Yahoo Finance.
