(Reuters) -Grain trader Archer-Daniels-Midland's CEO Juan Luciano said on Wednesday that the company is on track to achieve about $200 million to $300 million in cost reductions this year.

ADM has been cutting jobs and downsizing certain operations since announcing in February that it planned to reduce costs by $500 million to $700 million over three to five years.

The company has warned that its adjusted earnings this year would drop to the lowest since 2020, as U.S. trade upheaval and uncertainty around biofuel policies slowed sales and crimped trading and crop processing margins.

"From a capital allocation perspective, we continue to focus on aligning our capital to productivity efforts or cost reductions efforts or internal innovation," Luciano added at the Barclays Annual Global Consumer Staples Conference in Boston.

Luciano said that the company has big improvements coming up in its nutrition business and in the commodity businesses as well.

ADM signaled that it is seeing some regulatory tailwinds and tax benefits for biofuels and decarbonization that will help its carbohydrate solutions business.

"We're going to finish 2025 strong, and we're excited about 2026 onwards," Luciano said, flagging that there's still a lot of uncertainty ahead.