2 unchanged sentences
commodity market prices as they relate to the Company’s net commodity position, foreign currency exchange rates, and interest rates as described below.
+Added: Commodity Price Risk
The availability and prices of agricultural commodities are subject to wide fluctuations due to factors such as changes in weather conditions, crop disease, plantings, government programs and policies, competition, changes in global demand, changes in customer preferences and standards of living, and global production of similar and competitive crops.
10 unchanged sentences
Volumetric limits are monitored daily and VaR calculations and sensitivity analysis are monitored weekly.
−Removed: In addition to measuring the hypothetical loss resulting from an adverse two standard deviation move in market prices (assuming no correlations) over a one year period using VaR, sensitivity analysis is performed measuring the potential loss in fair value resulting from a hypothetical 10% adverse change in market prices.
−Removed: The highest, lowest, and average weekly position for the years ended December 31, 2023 and 2022 together with the market risk from a hypothetical 10% adverse price change is as follows:
+Added: The Company performs sensitivity analyses measuring the potential loss in fair value resulting from a hypothetical 10% adverse change in market prices.
+Added: The highest, lowest, and average weekly long (short) position for the years ended December 31, 2024 and 2023 together with the market risk from a hypothetical 10% adverse price change is as follows (in millions):
December 31, 2024 December 31, 2023
−Removed: Long/(Short) Fair Value Market Risk Fair Value Market Risk
−Removed: (In millions)
+Added: Fair Value Market Risk Fair Value Market Risk
Highest position $ 543 $ 54 $ 498 $ 50
2 unchanged sentences
The change in fair value of the average position was due to the overall decrease in average quantities of certain commodities.
−Removed: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK (Continued)
+Added: ARCHER-DANIELS-MIDLAND COMPANY
+Added: Foreign Currency Exchange Risk
The Company has consolidated subsidiaries in more than 80 countries.
3 unchanged sentences
These currencies represent the major functional or local currencies in which recurring business transactions occur.
−Removed: The Company also uses currency exchange contracts as hedges against amounts indefinitely invested in foreign subsidiaries and affiliates.
+Added: The Company also uses currency exchange contracts and foreign currency denominated debt as hedges against amounts indefinitely invested in foreign subsidiaries and affiliates.
The currency exchange contracts used are forward contracts, swaps with banks, exchange-traded futures contracts, and over-the-counter options.
1 unchanged sentence
The potential loss in fair value for such net currency position resulting from a hypothetical 10% adverse change in foreign currency exchange rates is not material.
−Removed: Effective April 1, 2022, the Company changed the functional currency of its Turkish entities to the U.S.
−Removed: dollar which did not have a material impact on the Company’s consolidated financial statements.
−Removed: The amount the Company considers indefinitely invested in foreign subsidiaries and corporate joint ventures translated into dollars using the year-end exchange rates is $15.5 billion and $13.0 billion ($17.9 billion and $15.5 billion at historical rates) at December 31, 2023 and 2022, respectively.
−Removed: The increase is due to the increase in retained earnings of the foreign subsidiaries of $2.4 billion and the appreciation of foreign currencies versus the U.S.
−Removed: dollar of $0.1 billion.
−Removed: The potential loss in fair value, which would principally be recognized in Other Comprehensive Income, resulting from a hypothetical 10% adverse change in quoted foreign currency exchange rates is $1.8 billion and $1.6 billion for December 31, 2023 and 2022, respectively.
−Removed: Actual results may differ.
+Added: Interest Rate Risk
The fair value of the Company’s long-term debt is estimated using quoted market prices, where available, and discounted future cash flows based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements.
6 unchanged sentences
Market risk 271 378
−Removed: The increase in the fair value of long-term debt at December 31, 2023 is due to a new debt issuance and a decrease in corporate bond interest rates.
+Added: The decrease in the fair value of long-term debt at December 31, 2024 is due to an increase in corporate bond interest rates.
+Added: ARCHER-DANIELS-MIDLAND COMPANY
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.