To The Moon

Living in this world, unknown things happen every day, and as a stockholder, the stock market may make you increase your knowledge every day. Today, we want to talk about two food giants,$Archer-Daniels Midland(ADM)$And$Bunge(BG)$Before that, let's start with the Russian-Ukrainian war.

When the war started, human life suddenly disappeared, praying for world peace; And the money that bets on war will not stop. In the past two days, the craziest thing in the market is Renni. Some people lost 8 billion dollars overnight, which may set a new record for BillHwang's one-day loss. However, the rise of the futures market is not a day, more than a month. From gold to crude oil, from corn to wheat, we have seen an amazing increase in agricultural product prices in 2020 and 2021:

Sugar-increased by 15.42% in 2020 and 21.89% in 2021

Soybeans-increased by 39.48% in 2020 and 1.03% in 2021

Corn-increased by 24.82% in 2020 and 10.53% in 2022

CBOT wheat-up 14.63% in 2020 and 20.34% in 2022

Ethanol-increased by 4.22% in 2020 and 58.41% in 2021

In 2020 and 2021, commodity prices rose, and agricultural products were no exception. If rising inflation pushed up agricultural input costs, the value of fertilizer, energy, equipment, transportation and land has risen to its highest level in many years. Rising production costs have brought upward pressure on grain and oil prices. And, the global population grows by about 20 million people every quarter. To feed more than 7.87 billion people, the food supply must keep up with the increasing demand. Now, the evolution of war has changed the situation.

Ukraine is known as the granary of Europe, and its largest export is corn, wheat and potatoes. Ukraine's food exports feed 400 million people in the world, and even set a goal of providing food for 1 billion people in the world by 2030. The bets on the futures market have been seen by Tiger Friends, and what this article wants to introduce is the target of the stock market. Tiger friends know that AB is the two companies mentioned at the beginning of the four giants of world food, which are referred to as "ABCD" for short.

$Archer-Daniels Midland(ADM)$

ADM was founded in 1902 and has a history of more than 100 years. It is known as one of the four major food giants in the world. The other three are Bunge of the United States, Cargill of the United States and Louis Dreyfus of France. People in the industry call them ABCD for short. They are major players in the international food market and control more than 80% of the trading volume in the global food market.

American ADM is called: Archer Daniels Midland, It is the world's largest agricultural production, processing and manufacturing company. It is also the world's largest processor of rapeseed, corn, wheat, cocoa and other agricultural products. It produces more than 270 kinds of crop processing products, which are used in food, beverage, industry and animal husbandry feed markets all over the world. It can be said that it is ubiquitous in the agricultural field. ADM's business model is summarized as a closed loop of the whole industrial chain with agricultural products processing as the core and storage, logistics and trade.

Headquartered in Chicago, the company employs nearly 40,000 people. With its latest market value of about $47.2 billion, it is the largest company in the agricultural products industry. ADM operates multiple business units:

Agricultural services and oilseed sector (77pc of 2020 sales)

Carbohydrate sector (13%)

Nutrition sector (9%)

On January 25th, the company announced its financial report, and the revenue of 21Q4 once again exceeded expectations, with a total revenue of 23.1 billion US dollars. That was 28.4% higher than the same period last year and $2.88 billion higher than expected. These are indications that markets and their participants (i.e. analysts) underestimate the importance of bull markets, including commodity prices, domestic and export demand, and ADM's ability to deliver.

$Bunge(BG)$

$Bunge(BG)$Is an American agribusiness and food company that exports soy products, produces and processes fertilizers and food, and trades cereals. BG, the world's largest oilseed processor, has also formed a joint venture with Chevron Corp. (CVX) to meet demand for renewable fuels.

As a manufacturer, BG is at the front end of the supply chain, and any cost increase of BG may be passed on to consumers, thus adding additional protection. The growing population and the demand for food, agriculture and renewable energy are all external factors conducive to the development of BG. In addition to having great value opportunities, BG is also an excellent dividend stock. Its dividend rating is also attractive, with a forward dividend yield of 2.13%.