Citi Raises Estimates On Archer Daniels

Citigroup is raising its estimates on Archer Daniels Midland Company ADM by $0.05 in FY2011-2013. The estimate revisions are driven by higher ethanol prices and margins in all years, and higher expected agriculture trading profits driven by volatility in the grain markets, and where ADM typically thrives. Risks include a a substantial drop in crude oil prices as being one of the primary risks to earnings estimates for Archer Daniels. Rising corn prices could increase Archer Daniels HFCS and ethanol production costs depending on the amount of the company's hedges. Citi has a Buy rating on Archer Daniels with a $38 price target ADM closed Monday at $32.95