What Do You Get When Corn Rises and Oil Falls? This Very Unlucky Stock.
A decade ago, Archer Daniels Midland (ADM) was a grain processing giant that billed itself as the “Supermarket to the World.” Then, in 2006, it brought in a former executive at Chevron (CVX), Patricia Woertz, to be chief executive and lead it into a biofuel-ed future.
Now it’s caught in a bad squeeze.
Thanks to a drought in the Midwest, corn prices have shot up.
But crude oil prices have been dropping.
Back in 2006, Fortune wrote in this profile of Woertz: “A continued drop in the price of oil (which helps set the price for ADM ethanol in the U.S. and biodiesel in Europe), combined with a sharp rise in corn or soy (raw ingredients for a myriad of ADM products), would put a quick end to Woertz's corner-office honeymoon.”