Archer-Daniels-Midland and Bunge Technical Research – Farm Products Industry Looks to Resume Growing

Several grain producers and processors continue to thrive in the farm products industry. Severe droughts throughout the U.S. were once thought to be the bane of the industry but instead drove grain prices up so high that even reduced harvests resulting from rain shortages may not impede revenues greater than those seen a year ago. Instead, several smaller issues have nagged at the industry’s impressive run over the last six months. Namely, labor stoppages outside the U.S. and mounting input costs have posed as speed bumps of late. A potential halting of Mississippi river transportation due to low waters may have a more serious impact down the road though.

Bunge Ltd.’s brisk pace met with a minor hiccup earlier this month as a brief labor stoppage interrupted some of its operations in Argentina. Labor negotiations are underway and Bunge looks fully capable of building upon second half momentum heading into the New Year. Our technical analysis on Bunge is available at

Archer-Daniels-Midland has also experienced challenges of late, but is moving in a positive direction. However, getting input costs and operational costs down on a consistent basis will be pivotal to maintain this trend. Investors may also want to keep an eye on the ongoing Mississippi River situation and how it may affect its shipments. Read our technical analysis on Archer-Daniels-Midland Co. at