ADM Cranks Up 2026 Outlook on Biofuel-Driven Margins

Archer-Daniels-Midland (ADM), a global crop processor, has raised its profit outlook for 2026 after beating expectations in its second-quarter earnings report. According to Reuters, the upgrade is linked to stronger biofuel-related processing margins.

The 'spread', the gap between what ADM pays for corn or soybeans and what it earns selling ethanol, soybean meal, and soybean oil, has widened due to higher US biofuel blending mandates increasing demand for biofuel ingredients, while higher energy prices make fuels like ethanol and renewable diesel more valuable.

ADM's ag services and oilseeds unit saw a big jump in operating profit from the previous year as crushing soybeans and producing ethanol became more lucrative. Volumes also picked up: a grain-price rally encouraged farmers to sell stored crops, giving merchants more product to move, while exports remained supportive.