Agricultural corporations boast huge profits in midst of food crisis

Volatility in commodity markets presented unprecedented opportunities, ADM chief executive Patricia Woertz told investor analysts in on the call. Once again, our team leveraged our financial flexibility and global asset base to capture those opportunities to deliver shareholder value.

Commodities markets have been flooded with investors from out of the credit and housing markets looking for more sound sources of profit. As a result, the grain, metals and oil markets have been subject to rampant turnover of stocks and huge fluctuations in the valuation of the most basic goods.

The price of oil, which has risen 75 percent in the past year, drove up freight and farming and fertilizer production costs substantially, greatly affecting grain production costs.

More directly, speculation and investment in the food system have soared. According to data from agricultural research firm AgResource, investment in corn, soybeans, wheat and livestock trades has ballooned from $10 billion in 2006 to over $47 billion.