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ADM Studies Options for Corn Dry Mills as Ethanol Margins Slump

  • The review comes as ADM takes a `fresh look' at capital use
  • ADM spent $1.3 billion since 2006 to build two dry mills
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Archer-Daniels-Midland Co., the largest U.S. ethanol producer, is looking at strategic options for its corn dry mills as its efforts to boost returns are held back by lower profit margins and an oversupply.

ADM is assessing the future of its dry mills, which make products including ethanol, given concerns about their long-term fundamentals, Juan Luciano, chairman and chief executive officer of the Chicago-based company, said during a conference call Tuesday with analysts. While the ethanol operations including the dry mills have positive cash flow, the company is working with an adviser to examine profitability against a backdrop of lower crude oil prices, he said. The review doesn’t include ADM’s corn wet mills.