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- 1 ADM share is likely to grow by a maximum of 58% in a year.
- 2 The food processing co. was trading at $73.94 at press time.
Shares of American food processing company, Archer-Daniels-Midland Company (NYSE: ADM), entered a consolidation phase last week, highlighting decreased activity among interested investors. ADM stock traded at $73.94, up by 0.07% since the previous close. The food industry is facing mounting challenges as the population goes up, leading to food shortage globally.
EV Market Could Become a Hurdle For ADM
Climate change is a big hurdle for the global food market. Weak demands amid barriers to export and import has affected the market negatively. Additionally, the Russia-Ukraine war, with Ukraine considered Europe’s bread basket, is among significant factors hindering the food industry.
ADM being a leader in food processing, could enhance production quality to outrun its competitors. The company’s contenders including Nestle SA (SWX: NESN), Deere and Company (NYSE: DE) and Bunge Ltd (NYSE: BG) declined in yesterday’s trading session. The plunge came after the Environmental Protection Agency (EPA), an independent executive agency, released a report establishing rules for balanced biofuels growth.
Agricultural magazine Progressive Farmer reported the District Court of Illinois has dismissed a lawsuit against the company. Per the case, allegedly, ADM manipulated Ethanol prices at the Argo Terminal, a daily location for Ethanol trading in the state. Archer-Daniels-Midland attorneys said Ethanol supplier Midwest Renewable Energy “failed to prove anti-injury occurred.”
The Chicago-based company’s renewable energy could help ADM stock price gain significantly in the near future. The United States has pledged to go carbon neutral by 2050. The Biden Administration is seeking low emission bio-fuels to decarbonize the transportation sector. However, electric vehicles may become a hindrance for the company. Americans may prefer battery-powered vehicles to reach carbon neutrality goals.
ADM Stock Price Performance
ADM stock was moving downward since the year’s beginning. The price fell by over 9% within the first week of January 2023. Company shares maintained support near $74 during March and May 2023. The momentum has remained choppy since. As of now ADM share is maintaining resistance near $76 a support level at $72.
Bull bear power (BBP) indicator has gone neutral, highlighting neither bullish, nor bearish dominance. Moving average convergence divergence (MACD) is highlighting the same. However, vortex indicator + (VI+) has crossed above vortex indicator – (VI-), indicating a potential uptrend.
Analysts at TradingView are bullish on ADM stock, maintaining a buy rating for the past three months. Additionally, they predict the company shares to grow by a maximum of 58% in a year.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
