Global agribusiness giant ADM has reported strong first quarter results with the company’s ag services and oilseed sector delivering a substantially higher year-on-year performance.

Operating profit in the Ag Services and Oilseeds segment climbed to US$1.01bn from US$777M last year. Ag services profit increased from US$209M during the quarter to US$258M, while crushing profit increased US$382M to US$428M.

“Ag Services & Oilseeds delivered substantially higher year-over-year results… driven primarily by the short South American crop,” ADM said in the 26 April statement announcing the company’s first quarter results to 31 March.

Crushing was higher in 2022 compared to last year driven by robust protein and vegetable oil demand.

ADM’s first quarter net earnings totalled US$1.05bn, a 53% increase from the US$689M in the same period last year.

Revenues for the first quarter increased to US$23.65bn from US$18.89bn last year.

ADM said it expected its 2022 results to exceed last year’s performance.

“Looking forward, we expect reduced crop supplies — caused by the weak Canadian canola crop, the short South American crops, and now the disruptions in the Black Sea region — to drive continued tightness in global grain markets for the next few years.”