Nov. 4 (Bloomberg) -- Archer Daniels Midland Co., the world's largest grain processor, said first-quarter profit more than doubled as higher commodity prices boosted earnings from processing soybeans and handling grain. The shares surged.

Net income rose to $1.05 billion, or $1.63 a share, in the three months through September, from $441 million, or 68 cents, a year earlier, Decatur, Illinois-based ADM said today in a statement. Excluding one-time items, profit was $1.61 a share, topping the 72-cent average estimate of nine analysts in a Bloomberg survey. Sales gained 65 percent to $21.2 billion.

Chief Executive Officer Patricia Woertz charged more to transport and process grains after crop prices soared in the first half of the year. Corn reached a record $7.9925 a bushel in June, and soybeans reached an all-time high of $16.3675 a bushel in July.

``In the midst of a slowing world economy and tighter credit conditions in the global grain markets, the company leveraged its strong balance sheet to act on opportunities created by volatility and take market share in the quarter,'' Robert Moskow, an analyst at Credit Suisse Group AG, said today in a note. He had forecast profit of 62 cents a share and rates the stock ``neutral.''

ADM gained $3.09, or 15 percent, to $24.20 as of 8:57 a.m. in trading before the official opening of the New York Stock Exchange. Before today, the shares declined 55 percent this year.

Profit from the agricultural-services unit, which stores and transports grain, increased 87 percent to $428 million because of ``opportunities created by market volatility, global shifts in sources of grain supplies and the delayed U.S. harvest,'' the company said.

Oilseeds Earnings

Earnings from processing oilseeds more than doubled to $510 million on widening crush margins due ``to favorable raw-material positioning,'' the company said.

Soybean crush futures, a theoretical index showing the spread between the soybean, soybean meal and soybean oil futures traded on the Chicago Board of Trade, averaged 17 percent higher at $70.8125 a bushel during the third quarter than a year earlier.

Profit from corn processing fell 53 percent to $118 million because of higher costs for corn and energy.

To contact the reporter on this story: Choy Leng Yeong in Seattle at clyeong@bloomberg.net.

Last Updated: November 4, 2008 09:11 EST