Bunge Quarterly Profits Nearly Double on Soy Demand and Strong Soy Processing Margins
Global commodity traders such as ADM, Cargill, and Louis Dreyfus have had to navigate a host of challenges due to the ongoing global pandemic and the disruptions to the food and fuel supply chains it has caused. And as new lockdowns appear on the horizon, these challenges will likely intensify.
Bunge, however, has appeared to weather the market better than most, posting a 91 percent increase to its Q3 profits due to high demand for soy and strong soy processing margins boosting its agribusiness division.
As a result, the company ended up raising its full-year profit guidance for a second straight quarter, and its share price climbed by 7 percent to its highest point in more than a year as it forecasted a favorable outlook for its edible oils unit despite COVID-19.
Bunge’s plants continue to operate at, or near normal levels as its earnings more than doubled to $467 million with strong margins in South America (with ongoing grain sales by South American farmers), Europe, and Asia.