Archer Daniels Midland has reported a 98% slump in earnings to $8m – its worst quarter for nearly five years – as derivative losses added to woes caused by falls in handling and crushing profits.

Shares in the group, the world's biggest grain processor, fell 10% in New York.

The group attributed $229m of the fall in earnings in the January-to-March period to currency losses at Gruma, the Mexican tortilla group in which ADM has a stake, and a tax charge triggered by a restructuring at Singapore-listed Wilmar International. ADM has a 10.4% stake in Wilmar, the world's laregst palm oil processor.

"Our underlying performance was solid in view of the global economic conditions and the associated challenges faced by our industry," Patricia Woertz, the group's chief executive, said.

Cash cow stumbles

Nonetheless, profits at all the group's three operating divisions fell, with those at agricultural services - historically the group's main earner – tumbling by two thirds to $121m as the slowdown in demand for crops curbed demand for ADM's marketing and handling services.

Profits in corn processing slumped 72% to $49m, as the decline of ethanol production into the red more than offset a better quarter for sweeteners and starches.

Oilseeds and processing profits eased 5.5% to $224m, as a better performance by Wilmar made up for a tumble in North American crushing margins.

Group revenues were, at $14.8bn, 23% lower for the period, the group's third quarter.

ADM shares stood $2.53 lower at $23.64 in afternoon trade in New York.

Grim for Gruma

Gruma's derivative losses stem from bets on the dollar which ran up massive losses after the slump of the Mexican peso last autumn.

Group filings showed the loss rising from about $290m in September to $680m in October, and more than $800m in February.