Archer Daniels Midland Co. F1Q10 (Qtr End 9/30/09) Earnings Call Transcript

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2009-11-03 11:57:06.0

Tags: Archer Daniels Midland Co., Call Transcript, Harvest, Earnings, Corn, Benefits, Human Resources, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instruction). Our first question comes from the line of Christine McCracken from Cleveland Research. Please proceed.

Christine McCracken - Cleveland Research

You called out this delayed harvest as obviously a big factor in your results this quarter, clearly it's still coming out of the ground slowly, and I think you mentioned it could take a couple months here before we get it all out of the ground. A couple of questions. First, do you expect to see kind of similar results in terms of volumes has been through your next quarter, and then secondly, we've kind of heard of some spot shortages of corn, guys running out of corn? Could you fill in and actually see a benefit from having some corn in storage?

Steve Mills

Well, Christine, I think we didn't talk much about the impact of the delayed harvest on this particular quarter. It always makes some difference, as we roll from old crop to new crop. And we are also interested in how the harvest is going to unfold. We’re glad to see sunny whether here in the Midwest here this week. I think John has a couple of comments about

I think John has a couple of comments about the corn situation and the impact of the harvest.

John Rice

Well, the overall volumes, Christine is, we expect to have actually better volumes this year than last year, just because we have larger crops. We're seeing very good export demand on the soybean side of the business. Corn is a little bit slower than what we anticipated, but there's cheaper corn in other places around the world, but we do expect our export assets to run close to capacity this year.

In terms of corn shortage and spot shortages, certain areas we've seen that. We've had that. Just because we've had so much rain. Here in Decatur I think we've had over 10 inches of rain in the month of October. So we haven't been able to get the corn out. But with our network we've been able to move corn from one area to the other area without having any real concerns. But now we have a dry forecast and hopefully farmers will get back in the field and actually we saw them in the fields yesterday.

Christine McCracken - Cleveland Research

All right, so you haven't been able to get any real benefit or arbitrage benefit just from having availability of corn in the current situation?

 

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