Archer-Daniels-Midland stock drops after Trump’s Coca-Cola sugar claim

Investing.com -- Archer-Daniels-Midland (NYSE: ADM) stock dropped as much as 5.6% in premarket trading Thursday following President Trump’s announcement that Coca-Cola (NYSE: KO) has agreed to use "real cane sugar" in its U.S. soda products.

The potential shift away from high-fructose corn syrup could significantly impact ADM, a major processor of corn-based sweeteners. Trump shared the news on social media, stating: "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 with a statement acknowledging Trump’s comments: "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." The company stopped short of confirming a complete switch to cane sugar.

Bloomberg Intelligence analyst Alvin Tai noted the potential market impact: "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."

The analyst further explained: "Using sugar would displace high-fructose corn syrup, creating an oversupply of corn and hurting ADM’s corn-processing business."

Such a shift could create ripple effects throughout the agricultural commodities market, potentially benefiting sugar producers while negatively affecting corn processors like ADM, which derives significant revenue from corn-based sweetener production.

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