Global Markets: Trade war, wet spring takes toll on ADM

By MarketsFarm

WINNIPEG, Aug. 1 (MarketsFarm) – The following is a glance at the news moving markets in Canada and globally.

– Chicago-based grains merchant and food processor Archer Daniels Midland reported a 41.3 per cent drop in their second-quarter adjusted profit on Thursday. In the second quarter the company’s adjusted net earnings were US$340 million, compared to US$579 million the previous quarter. Reports said two factors were at play: the United States/China trade war and the severe wet conditions that plagued the U.S. Midwest and Plains this spring. Previously, the trade dispute benefitted ADM as it boosted its trading and oilseed processing business, along with a drought in Argentina.

– Following a meeting on Thursday between U.S. Secretary of State Mike Pompeo and senior Chinese diplomat Wang Yi, China warned the U.S. to be cautious in their dealings with Taiwan, according to reports. China has long considered Taiwan to be a ‘wayward province’ and not an independent country. The U.S. has been a strong ally of the island nation since it broke away from China in 1949. Wang stated the U.S. needs to be careful about the busy South China Sea waterway and Hong Kong.

– With the Canadian general election a little over two months away, the Conservative Party gained a strong lead in fundraising. On Wednesday, reported showed the party raised approximately C$16.5 million during the first six months of 2019. Over the same period, the Liberals raised C$8.9 million, the New Democrats C$2.6 million and the Greens almost C$2.2 million. Recent opinion polls have indicated the election will be a tight race between the Liberals and the Conservatives.

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