4 unchanged sentences
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.
−Removed: The Company manages its exposure to adverse price movements of agricultural commodities used for, and produced in, its business operations, by entering into derivative and non-derivative contracts which reduce the Company’s overall short or long commodity position.
−Removed: Additionally, the Company uses exchange-traded futures and exchange-traded and over-the-counter option contracts as components of merchandising strategies designed to enhance margins.
−Removed: The results of these strategies can be significantly impacted by factors such as the correlation between the value of exchange-traded commodities futures contracts and the cash prices of the underlying commodities, counterparty contract defaults, and volatility of freight markets.
−Removed: In addition, the Company, from time-to-time, enters into derivative contracts which are designated as hedges of specific volumes of commodities that will be purchased and processed, or sold, in a future month.
+Added: The Company uses exchange-traded and OTC commodity instruments to manage its net position of merchandisable agricultural product inventories and forward cash purchase and sales contracts to reduce price risk caused by market fluctuations in agricultural commodities and foreign currencies.
+Added: The Company also uses exchange-traded and OTC commodity instruments as components of merchandising strategies designed to enhance margins.
+Added: The results of these strategies can be significantly impacted by factors such as the correlation between the value of exchange-traded commodities futures and the value of the underlying commodities, counterparty contract defaults, and volatility of freight markets.
+Added: In addition, the Company enters into futures contracts and over-the-counter swaps which are designated as hedges of specific volumes of commodities that will be purchased and processed, or sold, in a future month.
The changes in the market value of such futures contracts have historically been, and are expected to continue to be, highly effective at offsetting changes in price movements of the hedged item.
Gains and losses arising from open and closed designated hedging transactions are deferred in other comprehensive income, net of applicable taxes, and recognized as a component of cost of products sold or revenues in the statement of earnings when the hedged item is recognized.
−Removed: The Company’s commodity position consists of merchandisable agricultural commodity inventories, related purchase and sales contracts, energy and freight contracts, and exchange-traded futures and exchange-traded and over-the-counter option contracts including contracts used to hedge anticipated transactions.
+Added: ARCHER-DANIELS-MIDLAND COMPANY
+Added: The Company’s commodity position consists of merchandisable agricultural commodity inventories, related purchase and sales contracts, energy and freight contracts, and exchange-traded and over-the-counter commodity instruments, including contracts used to hedge anticipated transactions.
The fair value of the Company’s commodity position is a summation of the fair values calculated for each commodity by valuing all of the commodity positions at quoted market prices for the period, where available, or utilizing a close proxy.
−Removed: The Company has established metrics to monitor the amount of market risk exposure, which consist of volumetric limits, and value-at-risk (VaR) limits.
−Removed: VaR measures the potential loss, at a 95% confidence level, that could be incurred over a one year period.
−Removed: Volumetric limits are monitored daily and VaR calculations and sensitivity analysis are monitored weekly.
−Removed: The Company performs sensitivity analyses measuring the potential loss in fair value resulting from a hypothetical 10% adverse change in market prices.
−Removed: 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):
+Added: The weekly highest, lowest, and average long (short) positions, for the years ended December 31, 2025 and 2024 together with a risk of a hypothetical 10% adverse price change in market prices is as follows (in millions):
December 31, 2025 December 31, 2024
3 unchanged sentences
Average position 279 28 168 17
−Removed: The change in fair value of the average position was due to the overall decrease in average quantities of certain commodities.
−Removed: ARCHER-DANIELS-MIDLAND COMPANY
+Added: The Company monitors market risk exposure through various metrics such as volumetric limits and the value-at-risk (VaR) limits.
+Added: Volumetric limits are monitored on a daily basis.
+Added: VaR and related sensitivity analysis, measuring the potential loss in fair value resulting from a hypothetical 10% adverse change in market prices, is monitored on a weekly basis.
Foreign Currency Exchange Risk
15 unchanged sentences
Fair value of long-term debt $ 6,309 $ 7,055
−Removed: Fair value amount over (under) carrying value (501) 298
+Added: Fair value amount (under) carrying value
Market risk 317 271
−Removed: The decrease in the fair value of long-term debt at December 31, 2024 is due to an increase in corporate bond interest rates.
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.