November 2, 2020
ADM CEO: COVID-19 outbreaks push demand for US corn and soybeans
Juan Luciano, Archer Daniels Midland (ADM) chief executive officer, said the COVID-19 pandemic is pushing government's food security worries, as importers need US corn and soybeans to meet increased demand, Reuters reported.
In a conference call to report quarterly results, Luciano said ADM can benefit from the increased concerns as its traders and exporters connect areas with surplus supplies to other regions that are facing shortages.
On October 29, Brazil President Jair Bolsonaro said the country is importing food staples such as soybeans because of rising domestic prices. Brazil is the biggest soybean producer in the world.
Luciano said the United States has become a prime supplier for corn and soybeans, especially as Brazil has depleted its stocks of soybeans and is currently in a food inflation environment. As for rival producer Argentina, Luciano said they have little incentive to sell their crops as their currency is volatile.
Because of this, Luciano said the US corn and soybeans are needed by the world for the first time in a long time.
China, the biggest importer of soybean in the world, has boosted its summer and autumn purchases for US corn and soybeans.
China's government is discussing to approve additional permits to import millions of tonnes more of corn over the next year as demand for livestock feed is on the rise, Reuters reported.