Archer-Daniels-Midland Company (ADM) procures, transports, stores, and merchandises agricultural commodities and products internationally. The company operates through three segments: Ag Services and Oilseeds; Carbohydrate Solutions; and Nutrition. On the other hand, FMC Corporation (FMC) is an agricultural sciences company that operates in North America, Latin America, Europe, the Middle East, Africa, and Asia. It offers crop protection, plant health, and professional pest and turf management products.
The agriculture industry has been in the limelight so far this year, thanks to solid demand and elevated food prices. The spike in food prices is driven by the ongoing Russia-Ukraine war and the increasing cost of fertilizer and energy. The deepening supply chain disruptions resulted in an imbalance between the demand and supply of agricultural commodities, leading to a surge in commodity prices. However, the World Food Price Index dropped 0.6% in May to 157.4 points but is still close to a record high of 159.7 points hit in March. The uptrend in prices has resulted in solid upswings in the agriculture stocks. According to a report by The Business Research Company, the global agriculture market is projected to reach $18.81 trillion in 2026, growing at a CAGR of 10.7%. Thus, the rapid growth in the agricultural industry will benefit both ADM and FMC.
