Archer-Daniels Midland (NYSE:ADM) is about to release earnings. As you contemplate management comments ponder this Bear Case Scenario.
Corn Ethanol Demand is propped by the renewable fuel standard which is a political contrivance and not sound economics.
ADM as a commodity trader is price taker and not price maker. This means you do not control margins. They control you.
While ADM has many divisions there are many external factors beyond ADM’s control. Some of which will bite margins and reduce profits at will.
George Gutowski writes from a caveat emptor perspective.