ADM, Corteva Raise 2026 Profit Forecasts on Strong Processing and Seed Demand Outlooks

Major global agribusinesses over the past week have raised their 2026 profit forecasts on strong oilseed processing outlooks and strong demand across key ​crop markets, particularly in the United States.

Reuters reported that “Archer-Daniels-Midland raised its forecast for full-year adjusted ‌profit and beat quarterly earnings estimates on Tuesday, citing a strong oilseed processing outlook.”

“A rally in ​U.S. grain prices since the ​start of the Iran war has ⁠triggered fresh farmer selling of corn ​and soybeans, which were stored from last ​year’s crop during a prolonged period of low prices,” Reuters reported. “In the wake of U.S. and Israeli ​attacks on Iran, farmers across the ​U.S. Midwest sold stored corn, soybeans and wheat as ‌prices ⁠rallied, with grains flowing to ethanol plants and soybean processing facilities.”

“Chicago-based ADM expects 2026 adjusted earnings between $5.15 and $5.60 per ​share, compared ​with ⁠a prior forecast of $4.15 and $4.70 per share,” Reuters reported.

Similarly, Reuters reported that “U.S. agriscience company Corteva on Thursday raised its forecast for full-year adjusted profit, based on strong demand across key ​crop markets. The (U.S.) acreage shift toward soybeans and away from corn ‌is expected to support demand for seed traits, as farmers adjust planting decisions in response to higher input costs and tighter margins.“

“However, Corteva’s shares fell 3.7% in extended ​trading as revenue for the second quarter fell short of analysts’ estimate,” Reuters reported. “Crop prices ​were mixed in the reported quarter, with gains in soybean and corn offset by weak wheat prices amid ample supplies, keeping farm incomes under pressure and farmers ​cautious on spending.”

“The company now expects full-year 2026 adjusted earnings between $3.60 to $3.80 per share, up from a prior view of $3.45-$3.70 per share,” Reuters reported. “The company expects ⁠full-year operating ​EBITDA of $4.1 billion to $4.3 billion, the mid-point ​of which is slightly above analysts’ average estimate of about $4.18 billion, according to data ​compiled by LSEG.”

Bayer Posts Unexpected Gain In 2nd Quarter Profit

Additionally, Reuters reported that “German pharmaceuticals and agriculture group Bayer on Tuesday posted an unexpected 1.9% gain in quarterly adjusted profit on a strong rebound in sales of seed technology related to its dicamba weedkiller.”

“Second-quarter earnings before ​interest, tax, depreciation and amortisation (EBITDA), adjusted for one-offs, came in at €2.14 billion ($2.46 billion), above ​market expectations of €1.94 billion in an analyst consensus posted on the group’s website,” Reuters reported. “The strong earnings are another boost for CEO Bill Anderson after the U.S. Supreme Court in June reined in thousands of lawsuits claiming Bayer’s Roundup weedkiller causes cancer, removing ​a threat of billions of dollars in additional damages and settlements.”

CNH Expects Farm Machinery Rebound in 2027

Bloomberg’s Michael Hirtzer and Vidushi Sharma reported that “the farm machinery sector is primed for a rebound in 2027 as the current fleet ages and prompts growers to upgrade, according to tractor maker CNH Industrial NV.”

“Many farmers remain under pressure as US attacks on Iran have resulted in soaring fuel and fertilizer costs, limiting funds for new tractors and combine harvesters. Extremely dry field conditions from the US Plains to Europe are also hitting fields, giving growers less confidence on yields,” Hirtzer and Sharma reported. “Still, equipment purchases made during a peak in profits for both growers and machinery makers during 2022-23 mean farmers will have to buy something soon, at a time used inventory has been declining. That ‘replacement demand’ will come even as discretionary purchases remain weak, said CNH, whose brands include Case IH, New Holland and Steyr.”

“‘We’re going to approach that probably over the course of next year when the replacement demand is going to carry the industry,’ Chief Executive Officer Gerrit Marx said on an earnings call Monday,” Hirtzer and Sharma reported.