The Andersons (ANDE) 21st Annual Global Farm to Market Conference summary

Market and operational overview

• Plants are running at or above full capacity, supported by ongoing maintenance and skilled personnel, enabling record export years in 2024, 2025, and on pace for 2026.

• Ethanol trades at a durable discount to gasoline, supporting strong demand and confidence in the business model.

• Ethanol margins in Q2 have been good, with no forward hedges beyond Q1, and prudent risk management was applied when margins allowed.

• RVO finalization is driving higher RIN values, increasing demand for ethanol blending and boosting the value of corn oil byproducts.

• Acquisition of the remaining 50% of the ethanol JV has increased production capacity and aligns with a strategy of organic growth.

Export and trade dynamics

• Canada remains the largest export market for U.S. ethanol, with Europe, the U.K., and Vietnam also expanding blend rates.

• Brazil buys U.S. ethanol mainly during its intercrop period and has increased its own corn-based ethanol production and blend rates.

• Trade deals with the EU and U.K. have been beneficial, while China’s potential return to DDG imports could impact soybean meal and ethanol markets.

Agribusiness and commodity outlook

• Wheat markets are expected to be volatile through 2026–2027 due to the smallest hard wheat crop since 1972, while global S&Ds are not tight.

• Corn markets may tighten in 2027 if global demand grows or weather issues arise, with Brazil consuming more of its own production.

• Soybean carryout could tighten if China commits to large purchases, benefiting U.S. producers.