Archer Daniels Midland Company (ADM) procures, transports, stores, processes, and merchandises agricultural commodities and products primarily in the United States. It operates in three segments: Oilseeds Processing, Corn Processing, and Agricultural Services. Archer Daniels, through its other subsidiaries, provides commodities broking services; foreign exchange services; and participates in third-party reinsurance arrangements. The company was founded in 1898 and is based in Decatur, Illinois.

The company transforms crops such as corn, oilseeds, wheat and cocoa into food ingredients, animal feeds, and agriculturally derived fuels and chemicals. With crop sourcing, transportation, storage and processing assets spread over 60 countries, ADM connects farmers' crops with the needs of the global marketplace.

Archer is strong fundamentally with solid sales and earnings growth as well as great cash flow. In its latest quarter, the company reported net earnings of $585 million for the quarter ended December 31, 2008, up 24 percent from the same period a year ago. Net sales and other operating income increased 1 percent to $ 16.7 billion.

Technically the stock has a good profile, projecting a possible move up to the $35 per share area over the next month. Archer Daniels does have a very tradable options market and provides LEAPS that currently extends out to January of 2011, which is more than enough time for the trader to capitalize on this bullish opportunity.

Figure 1: Elliott Wave-4 Buy Pattern for Archer Daniels
(Source: Profit Source)
click here for larger view

Happy Trading.

Jeff Neal
Senior Writer, Options Strategist & Profit Strategies Radio Show Market Correspondent
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