Agricultural Products: 2Q26 Preview — Fuel Prices Helped in 1H, But Biofuels Demand Should Present the More Enduring Tailwind

Research evidence excerpt

Agricultural Products: 2Q26 Preview — Fuel Prices Helped in 1H, But Biofuels Demand Should Present the More Enduring Tailwind

J P M O R G A N North America Equity Research

08 July 2026

Agricultural Products

2Q26 Preview — Fuel Prices Helped in 1H, But Biofuels

Demand Should Present the More Enduring Tailwind

In this note, we preview upcoming 2Q26 earnings for ADM (Underweight), BG Food Producers & Retailers

AC(Overweight), and DAR (Overweight). BG is scheduled to report on Wednesday Thomas Palmer, CFA

July 29th. DAR is scheduled to report on Thursday, July 30th. ADM is likely to report (1-212) 622-5582

on Tuesday, August 4th. For all three companies, we see upside to both 2Q results thomas.palmer@jpmorgan.com

and their respective annual outlooks. Spot margins in the U.S. for both oilseed J.P. Morgan Securities LLC

crush and renewable diesel have come down from highs earlier in 2Q but remain

historically favorable to an extent that we do not think current estimates and

guidance reflect. For BG, we continue to see upside over time from cyclical

tailwinds and a variety of company-specific initiatives (Viterra integration, capital

projects, share repo); however, we think the company’s 2Q EPS beat and annual

guidance increase could be relatively muted, with the latter item being due to

limited forward visibility in certain markets and the company’s historic

conservatism. For ADM, we think a guidance increase could embed margin

strength extending further into 2026 than BG’s guidance might (as was the case last

quarter), in part due to better visibility in the US (where ADM’s crush footprint is

largest) and also its historic willingness to take a view on how industry margins

might trend. For DAR, we think industry conditions (e.g., renewable diesel