While a lot of excitement has been generated in the agriculture sector because of lower yields, especially with corn and soybeans, that doesn't necessarily mean something positive for every company connected to food, such as Archer-Daniels Midland (NYSE:ADM).
Deutsche Bank (NYSE:DB) has noted just that when downgrading Archer-Daniels-Midland from "Buy" to "Hold."
"Additionally, a tighter U.S. corn crop is incrementally negative for agricultural services segment volumes and profitability, while the current sweetener pricing letter does not appear to be adequate to offset higher corn, barring hedges. While F1Q11E (end Sept) should benefit from earlier corn harvest and fundamentals remain relatively solid, future positive catalysts are difficult to discern and valuation looks fair," said Deutsche.
ADM closed at $32.56 Monday, dropping $0.30, or 0.91 percent.
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