Major global grains trader Archer-Daniels-Midland Co (ADM) said it reached a record fourth-quarter profit and has projected strong demand for crops and biofuel over the coming year, Reuters reported.

The Chicago-based company's earnings increased close to 14% in Q4 thanks to increased demand for biofuel and higher ethanol margins, but high energy and grain costs affected earnings at ADM's corn-processing unit, its core ag services, and oilseeds segment where operating profits declined compared to the same quarter the year prior.

The company's results provide a look into how major global grain traders are enduring shifts in food and fuel demand affected by rising inflation and the COVID-19 pandemic.

Juan Luciano, ADM CEO, said they project a positive demand across their portfolio.

However, Luciano said crop prices will stay high into 2023 due to bad weather in South America, as well as the Russia-Ukraine crisis.

The company's net earnings increased from US$687 million to US$782 million, or US$1.22 per share to US$1.38 per share in the quarter that ended December 31, 2021, compared to the year prior.

-      Reuters