Baird analyst Ben Kallo named Darling Ingredients (DAR) as a Fresh Pick as he believes a rally in fat pricing should be a tailwind for the balance of the year. While he is more positive on Darling (DAR), Kallo said weather, trade, and African swine fever combine to make challenging ag environment more broadly and he is cautious in the near-term on Archer Daniels (ADM), Bunge (BG) and FMC Corporation (FMC). He keeps Outperform ratings on Darling and Archer and Neutral ratings on Bunge and FMC.

Reports Q1 revenue $1.4B, consensus $1.48B. "For several years, we have enjoyed tailwinds from a demand-driven global economy and strong global commodity and specialty ingredient prices. We are now adapting to the new reality of abundant global supplies. This is a cycle we have seen many times, and we are making the necessary adjustments in our procurement process and lowering our operating costs where feasible to gain back our margin leverage," said Randall C. Stuewe, Darling Ingredients chairman and CEO. "Globally we are seeing very nice progress and improvement in April for our core specialty ingredient business, and DGD has finally worked through its higher-priced feedstock pipeline. We anticipate an improved performance for the rest of the year."

Bunge is down -6.6%, or -$7.20 to $102.42.