Archer-Daniels-Midland (NYSE:ADM) saw its stock drop as much as 5.6% in premarket trading on Thursday after President Trump announced that Coca-Cola (NYSE: KO) plans to use “real cane sugar” in its soda products sold in the U.S.
This potential move away from high-fructose corn syrup could have a significant impact on ADM, a leading processor of corn-based sweeteners. Trump shared the news on social media, saying: “I’d like to thank all of those in authority at Coca-Cola. This will be a very good move by them.”
Coca-Cola responded by acknowledging the president’s comments but stopped short of confirming a full switch to cane sugar. The company said, “We appreciate President Trump’s enthusiasm for our iconic Coca-Cola brand. More details on new innovative offerings within our Coca-Cola product range will be shared soon.”
Bloomberg Intelligence analyst Alvin Tai highlighted the possible market implications: “US sugar consumption could rise about 4.4% from the usual amount of around 11 million metric tons annually if Coca-Cola implements President Donald Trump’s advice to use cane sugar in Coke beverages within the country.”
Tai added, “Using sugar would displace high-fructose corn syrup, creating an oversupply of corn and hurting ADM’s corn-processing business.”
Such a shift could reverberate throughout the agricultural commodities sector, benefiting sugar producers but potentially harming corn processors like ADM, which generates substantial revenue from corn-based sweeteners.
Archer-Daniels-Midland stock price
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