🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Several hurt in ADM central Illinois plant blast; corn, soy processing down

Published 09/10/2023, 11:48 PM
Updated 09/11/2023, 03:11 PM
© Reuters.

By Karl Plume

CHICAGO (Reuters) -Several employees were hospitalized after an explosion and fire late on Sunday at a massive Archer-Daniels-Midland (ADM) facility in Decatur, Illinois, that severely damaged crop processing operations, the company and the local fire department said.

Eight workers were injured at the ADM East processing plant and six were taken to hospital via ambulance, the Decatur Fire Department said in a statement on Monday. Five remained hospitalized on Monday morning, ADM said.

The company said it was evaluating the extent of the damage and investigating the cause of the incident.

Several structures were severely damaged in the blast, including a 10-story building and adjacent buildings, the fire department said.

A plant that crushes soybeans into soybean oil and white flake for soy protein production was down on Monday, ADM said. An adjacent corn processing plant was also "temporarily down until we can safely resume operations," the company said.

A prolonged outage at the massive processing facility in the heart of the U.S. Corn Belt would put downward pressure on crop prices just as Midwest farmers are preparing to harvest their corn and soybeans. U.S. crop prices, especially for corn, have declined as export demand has slumped.

The Decatur site, ADM's North American headquarters and its largest facility globally, houses soybean crushing facilities and one of the largest corn wet mills in the world.

It has the capacity to produce 375 million gallons (1.42 billion liters) of ethanol biofuel annually, making it the largest in the country, according to the Renewable Fuels Association.

© Reuters. FILE PHOTO: The world's largest corn mill of global grain company Archer Daniels Midland is pictured in Decatur, Illinois, U.S., March 16, 2015.   REUTERS/Karl Plume/File Photo

"Coming into harvest, if it is down for a week or more, that would really cripple the cash basis," said Mike Zuzolo, president of Global Commodity Analytics.

Spot basis bids for corn at ADM's Decatur location tumbled by 35 cents a bushel from late bids on Friday while soybean bids were flat. Bids have been dropping across the Midwest in recent weeks as buyers await newly harvested grain.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.