Salvator Tiano: Yes. Thank you very much. I want to go back to the Ag Service segment and understand a couple of things. So firstly, when I go back to the transcript last quarter, your initial expectations were for earnings to be down versus last year, if I remember correctly. And instead, they were up 35%. So, you mentioned a lot of dislocations but I just want to understand what actually differed versus your January expectations firstly for Q1? And secondly, you made the comment that Q2 earnings for Ag Services will be lower year-on-year. And I think that’s pretty much what everybody expected given the situation with Ukraine last year. I just want to frame a little bit with regard to Q1 where you may $350 million profit. How do you expect Q2 Ag Services to be versus Q1?
And especially given that Brazil is still selling – farmers have still sold far less soybeans than last year. Does this mean that you can see a very big boost in Q2 from these – from these trade flows? Thank you very much.
Juan Luciano: Thank you, Salvator, for the question. So as you said, Ag Services has a very, very good first quarter. This team continues to deliver and outperform sometimes on our own expectations. If you think about global trade and all the issues around the world sometimes are difficult to estimate, if you will but our team with their ability to connect, if you will origins with destinations and especially with the investments that we have made over the years on destination markets and allow us to capture more volume at higher margins than maybe in the past. They have had also a very disciplined risk management and very effective one, which we expect from them, but sometimes it’s not that easy to deliver in this volatile world.
Great execution in Australia, great execution on the Black Sea, origination program and again a solid margins at destination. South America were probably another bright point for us. They capture higher volumes and margins. We were very well positioned on a crop that was very large and on a farmer that was undersold. So we position ourselves properly, and we get the rewards from that. And North America benefited from a strong risk management and a strong bean export programs. Again, Brazil was a little bit delay with some of the rains and all that in terms of their harvest. So the U.S. extended the window a little bit more. Now Brazil, we think – if you think about second quarter and what we’re predicting it to be a little bit lower is we’re not going to have – if you think about second quarter last year, the same volatility that we have because of Ukraine at that point in time.
And the world was starting and the world was a little bit stunned on what we do now. Now we know what do we do? We have channels to export; the product is flowing for the most part. As I warned in my previous question, I think we’re more worried about the productivity of the farmers of Ukraine and Russia eventually later on. But I think for this year, we have the ability to export that. We expect robust North American corn exports until Brazil second con crop is available. And then I think that North America will lap until Brazil run out of core. So we have lower North American soy exports expected in the second quarter because Brazil will take that place. So it’s a little bit the shift if you will. And the decrease of that shift to be honest, Salvator sometimes are marked by the logistics issues.
Brazil has a large corn crop and soybean crop, and it needs to be able to move that to the ports and being able to ship it. And then you have the Ukraine issue we discussed before. So those are the puts and takes. In general, as I said, the unit is performing very well, performed exceptionally well in the first quarter. We expect them to perform stronger in the second quarter, but maybe not as strong as second quarter last year. Thank you.
Operator: Thank you. This concludes today’s question-and-answer session. I’d like to pass the conference over to Megan Britt for closing remarks.
Megan Britt: Thank you for joining us today. Please feel free to follow-up with me if you have any additional questions. Have a good day, and thanks for your time and interest in ADM.
Operator: This concludes today’s conference call. Thank you all for your participation. You may now disconnect your lines.
