This story was originally published on CFO Dive. To receive daily news and insights, subscribe to our free daily CFO Dive newsletter. In a one-two punch this week, the Securities and Exchange Commission finally showed its cards with regard to the scandal around intersegment sales accounting practices that has hung over Archer-Daniels-Midland for two years.  The SEC on Tuesday announced settled accounting and disclosure fraud charges against the Chicago-based grain trader giant and two former executives — ...

The settlement, along with the company’s efforts to improve and remediate its reporting processes, pave the way for ADM to move out from under the accounting cloud, according to Seth Goldstein, a Morningstar analyst. “To me, once you’re in the phase of settling with regulators that means the light’s at the end of the tunnel and you’re ready to move forward,” Goldstein said in an interview.The suit landed on the same day that the SEC announced that the Chicago-based grain trading giant agreed to pay a $40 mi ...

By Karl Plume and Chris Prentice WASHINGTON, Jan 27 (Reuters) - Grain trader Archer-Daniels-Midland Company will pay a $40 million civil penalty after the U.S. Securities and Exchange Commission charged it and two ​of its former executives with inflating the performance of a key business segment, the regulator ‌said on Tuesday. With the agreement, the U.S. Department of Justice closed a related criminal probe without bringing charges. The resolution concludes years-long government ‌investigations into ...

Corn futures are showing 1 to 2 cent losses on Monday’s midday. The CmdtyView national average Cash Corn price is down 1 3/4 cents at $3.92 3/4. USDA’s FGIS tallied corn export shipments at 1.51 MMT (59.45 mbu) during the week ending on January 22. That was 1.63% larger than the week prior and 20.74% above the same week last year. Mexico was the top destination of 402,936 MT, with 265,122 MT headed to Japan and 210,763 MT to Spain. Marketing year exports for 2025/26 are 31.437 MMT (1.24 bbu) since Septemb ...

Core Insights - The article emphasizes that successful investing is not about finding a single magic formula but rather about stacking multiple durable advantages, specifically value, momentum, trend, and credit [2][12][29] Value - Value investing is highlighted as the foundation for reducing risk and creating future returns by purchasing assets below their worth, which builds a margin of safety [3][11] - Ternium (NYSE:TX) is presented as a strong example of value, trading at earnings and cash flow multiples below normalized cycle peaks, indicating skepticism despite improved industry discipline [17] - Friedman Industries (NASDAQ:FRD) is noted for trading at valuation levels that assume mediocre outcomes, despite improving fundamentals [22] Momentum - Momentum is described as a measure of market reward, where securities with strong relative performance tend to continue outperforming due to gradual information absorption [4][11] - ATRenew (NYSE:RERE) shows improved momentum as results stabilize, shifting investor perception from survival to normalization [20] - The momentum for Friedman Industries has confirmed the value case, with the stock breaking higher and establishing an uptrend [23] Trend - Trend serves as a primary risk management tool, helping to align investments with market conditions and reducing catastrophic drawdowns [6][12] - The article suggests that when trend is combined with value and momentum, results can become spectacular, as it enforces discipline in capital allocation [12][28] Credit - Credit is identified as a crucial yet often underappreciated cornerstone, acting as an early warning system for market stress and a measure of individual security survival [8][9] - Ternium's strong balance sheet, characterized by low leverage and ample liquidity, allows it to invest during downturns, providing a margin of safety [18] - Seaboard Corporation (AMEX:SEB) exemplifies exceptional credit strength, maintaining low leverage and diversified cash flows, making it resilient during financial stress [27] Conclusion - The combination of value, momentum, trend, and credit creates a systematic approach to investing, allowing for extraordinary results by stacking probabilities rather than relying on single insights [12][15][29]

Group 1 - Soybean futures showed positive movement leading into the Christmas break, with contracts increasing by 11 to 14 cents [1] - Open interest decreased by 4,814 contracts, indicating some short covering in the market [1] - The national average Cash Bean price rose by 11 3/4 cents to $9.92 3/4 [1] Group 2 - USDA reported export sale commitments for soybeans at 25.778 million metric tons, a 33% decrease from the same period last year, representing 58% of USDA's export projection [2] - The average pace of soybean exports is lagging behind the 79% average [2] Group 3 - Buenos Aires Grains Exchange indicated that 75.5% of the soybean crop has been planted, which is below the average pace [3] - Condition ratings for the soybean crop are at 67% good/excellent, which is 5 points higher than last year [3] - Recent soybean futures prices include Jan 26 closing at $10.63 1/4, Mar 26 at $10.76 1/2, and May 26 at $10.87 1/2, all showing increases [3]

Core Insights - The autumn grain purchase is a significant event in the annual grain procurement process, with Anhui province actively implementing a "market-oriented leading and reserve grain guiding" strategy to ensure comprehensive grain collection [1][2] - As of the end of November, Anhui has successfully purchased 5.94 million tons of autumn grain, with market-oriented purchases accounting for 87.3% of the total [1] Group 1: Market Dynamics - Anhui has established a three-tiered coordination mechanism for autumn grain procurement at the provincial, municipal, and county levels, ensuring a unified approach across the province [1] - The province prepared over 34.9 billion jin (approximately 17.45 million tons) of storage capacity and over 34.5 billion yuan (approximately 5.3 billion USD) in funds for the procurement process [1] - A total of 1,872 enterprises and 10,165 personnel participated in the autumn grain procurement, utilizing 9,897 sets of equipment [1] Group 2: Policy and Support Measures - The government has coordinated central and local reserve procurement efforts, with 99 reserve enterprises entering the market to purchase government reserve rice at prices above 1.29 yuan per jin [2] - By the end of November, government reserves had purchased 412,000 tons of rice, helping to stabilize market expectations and maintain market stability [2] - Anhui has enhanced service levels for autumn grain procurement by optimizing five service areas, including on-site assistance and information dissemination, to ensure farmers can sell their grain comfortably [2] Group 3: Quality Control and Compliance - The province has strengthened law enforcement and supervision, focusing on key areas such as quality inspection, measurement verification, and payment for grain sales [2] - There is an emphasis on educating farmers about proper grain storage techniques and reducing losses throughout the grain supply chain [2]

Core Insights - Bunge Global exceeded Wall Street's expectations for third-quarter adjusted profit, driven by the acquisition of Viterra and improved oilseed processing margins, resulting in a 4.7% increase in shares [1] Group 1: Financial Performance - Bunge's adjusted profit for the quarter ending September 30 was $2.27 per share, the lowest third-quarter result since 2019, but above analysts' average estimate of $2.09 per share [5] - The combined company's soy processing and refining segment profit increased by 67% compared to the same quarter last year, while softseed processing and refining profit more than doubled due to a surge in volumes [6] - Profit in Bunge's grain merchandising and milling division rose by 56%, driven by higher wheat milling and ocean freight earnings, which offset poor grain merchandising results [6] Group 2: Market Dynamics - Strong soybean exports from South America, particularly from Argentina and Brazil, positively impacted Bunge's soybean processing and refining segment, as China reduced imports from the U.S. due to trade tensions [2] - In contrast, rival grain trader Archer-Daniels-Midland lowered its 2025 outlook due to U.S. trade policy uncertainty, highlighting the challenges faced by agribusinesses amid ample global crop supplies and declining margins [3] Group 3: Future Outlook - Ongoing uncertainty regarding trade and biofuels policy is expected to negatively affect fourth-quarter earnings, as both farmers and customers are hesitant to make long-term deals, putting pressure on Bunge's margins [4] - Bunge reaffirmed its earnings guidance for 2025, projecting between $7.30 and $7.60 per share, while acknowledging headwinds from policy uncertainty but noting that conditions are "developing favorably" [5]

Core Insights - Bunge exceeded Wall Street's expectations for third-quarter adjusted profit, driven by the acquisition of Viterra, improved processing margins, and increased crop sales volumes [1][2] - The merger with Viterra, valued at $34 billion, was completed in July, marking a significant milestone for the company [2] - The adjusted profit for the quarter was reported at $2.27 per share, surpassing analysts' average estimate of $2.09 per share [3] Financial Performance - Net sales from soybean processing and refining reached $10.86 billion, up from $7.86 billion in the same quarter last year, indicating a strong year-over-year growth [2] - The company's performance was further supported by a decline in soybean prices, which positively impacted processing margins [1]

Core Insights - ADM reported a reduction in its full-year earnings per share guidance, marking its third cut this year, attributed to declining earnings in the grain sector due to low crop prices and weaker demand [3][6] - The company's outlook was negatively impacted by a lower soybean crush margin, influenced by its larger footprint in North America compared to competitors [4][6] - The evolving global trade landscape, particularly shifts in soybean purchases by China towards South America, has affected ADM's near-term performance, although long-term demand for U.S. soybeans is expected to normalize by 2026 [5][6] Financial Performance - ADM's operating profit in the Agriculture Services and Oilseeds segment fell by 21% year-over-year to $379 million in the latest quarter [6] - The company is on track to achieve $200 million to $300 million in cost savings this year as it navigates uncertainties regarding U.S. biofuel policy and the U.S.-China trade deal [6] Market Dynamics - The recent trade agreement between the U.S. and China may lead to increased willingness from China to purchase U.S. soybeans in early 2024, despite current trends favoring South American suppliers [5] - CEO Juan Luciano emphasized that clarity on the China trade deal and biofuel policy will be crucial for commodity price movements in the near future [6]