Ingredion Incorporated (INGR)

The imminent changeover in Administrations is of greater import for our coverage universe than many other sectors as it portends material changes on multiple fronts, including regulatory policy (food and biofuels) and tariffs. Many of…

In an early September WSJ Op-Ed, Robert F. Kennedy Jr. (RFK) laid out prospective policy ideas that warrant examination given his nomination to lead the Department of Health and Human Services (HHS) – his nomination…

Q3 results were strong with the upside driven equally by segment earnings and lower financing costs (working capital, higher cash, and a $10M – $20M YTD – FX benefit). Full-year guidance was raised to $10.35-$10.65….

Very elevated uncertainty is the overwhelming theme headed into Q3 earnings, whether that be related to biofuels policy (see our Ag Brief published yesterday), the Election or protein production. Below (cont’d pg 2) we offer…

Global, particularly domestic, biofuel markets are transitioning between two starkly different environments. U.S./European product/credit prices have been pressured by a weaker energy complex and excess credit inventories. Feedstock values have been stickier (much stronger yr/yr…

We believe Ingredion likely benefited from better-than-expected demand/margin conditions in its Mexico business during Q3 given a step up in HFCS demand there against a backdrop of broadly stronger beverage consumption. In addition, peer commentary…

Given the ferocity of Hurricane Helene’s winds and its drenching rains, damage to the broiler industry that is concentrated in the Southeast is to be expected. The industry is no stranger to hurricane damage as…

2024 has borne a striking resemblance to 2014/2015 – sharp contraction in cattle herd (bottomed in 2014, down 9% from 2007 peak), dropping feed costs, bird flu and supply challenges within the broiler industry. This…

Ingredion posted strong Q2 results propelled by improved volumes and margin expansion. Adjusted for the SK divestiture, volumes grew 5% as compared to a 1.9% decline in Q1; on a 2-yr stack, Q2 volumes declined…

Global ag is experiencing a hangover from the boom years of 2021 – 2023. Global supply is much looser, processing capacity continues to expand and the impact of the Russia-Ukraine war has been largely blunted. …