Back to top

Analyst Blog

Food processing company Archer Daniels Midland Company (ADM - Analyst Report) signed a memorandum of understanding with its long-time partner Wilmar International Limited to work hand in hand in areas such as global fertilizer purchasing and distribution, global ocean freight operations, and tropical oils refining in Europe.

As per the terms of the memorandum, both the companies will partner with each other in the global fertilizer business engaging in purchase and distribution. As global partners in ocean freight operations, the companies aim at the optimum utilization and management of their shipping fleets. Initially, each company is entitled to contribute two ships to the effort. Under the pact to refine tropical oils in Europe, the companies look to maximize the refining capacity utilization. 

The companies pointed out that the formation of a strategic partnership under the memorandum will be based on the execution of definitive agreements. The companies intend to conclude the definitive agreements over the next few months.

Archer Daniels’ association with Wilmar dates back to mid-1990s when the companies jointly undertook a project to build a network of soybean processing operations in China. Archer Daniels currently has about 16% stake in Wilmar. Both companies share a unique relationship of being the prime supplier for each other.

Archer Daniels and Wilmar attribute the success of their partnership to their ability to tap on each other’s synergies, which in turn, helped the companies build on their success in Asian operations, meeting the growing demand for agricultural products in the region.  In the coming years, the companies look forward to extend this co-operation globally, starting with the areas outlined in the recent memorandum of understanding.

Archer Daniels, which competes with Bunge Limited (BG - Snapshot Report) and Corn Products International Inc. , currently has a Zacks #5 Rank, implying a short-term Strong Sell rating on the stock. The company retains a long-term Underperform recommendation.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SUPER MICRO… SMCI 26.62 +8.70%
CENTURY ALU… CENX 27.07 +8.37%
CANADIAN SO… CSIQ 38.09 +7.48%
BANCO DO BR… BDORY 16.69 +7.47%
WILLDAN GRO… WLDN 11.37 +5.77%