Advertise
Global grain trader Bunge outperformed Wall Street's adjusted profit estimates for the third quarter on Thursday, capitalizing on robust processing margins for soybeans and other oilseeds. The Missouri-based company reported an adjusted profit of $2.56 per share for the three months ending September 30, exceeding the analysts' average estimate of $2.44 per share, according to data from LSEG.
Quarterly net sales from soybean processing and refining rose by 5.4% year-on-year, reaching $11.4 billion. Despite market fluctuations, Bunge maintained its earnings per share outlook for 2026, projected at between $9.25 and $9.75. US corn and soybean prices have surged since the onset of the Iran conflict, incentivizing farmers to accelerate sales from last year's harvest after months of holding back supplies due to persistently low prices.
The market rally, fueled by US and Israeli strikes on Iran, triggered a significant wave of selling across the Midwest. Farmers moved corn, soybeans, and wheat from storage facilities to ethanol producers and major grain handlers, including Archer-Daniels-Midland and Bunge. Additionally, oil prices spiked as a result of the conflict, which subsequently drove up the value of crops utilized in biofuel production.
During an earnings conference call, Bunge expressed expectations that strong demand for vegetable oils will persist even if global energy prices decline, supported by biofuel blending mandates and the reallocation of small refinery exemptions in the United States. The company warned that vegetable oil supplies are likely to remain tight into next year. Furthermore, Bunge noted that farmer sales in Brazil accelerated following a currency drop after the election, a move that also helped lower some of the company's operational costs.
Bunge's softseed processing and refining segment reported quarterly net sales of $4.3 billion, up from $3.6 billion a year earlier. Meanwhile, net sales in its grain merchandising and milling division increased by 5.2% to $6.76 billion.
Source: Reuters