Bunge earnings double as drought alters grain trade
Bunge has taken advantage of the unusual trading patterns caused by poor global weather, shipping corn to the United States from Brazil and exporting the grain from Ukraine.
Bunge Ltd shares jumped on Thursday as the agribusiness giant doubled quarterly profits by mobilizing its global grain network to supply customers hit by the worst U.S. drought in more than 50 years.
Bunge said the world was modifying “typical trade flows” after poor weather slashed output in the United States, the world’s top grain exporter, and other countries, tightening corn and soy supplies.
Bunge managed 15 percent volume growth in its agribusiness segmentduring the third quarter, helped by new grain-handling and port facilities.
Bunge “had a great quarter,” said Christine Healy, an analyst for Scotia Capital, on an investors’ conference call. “Volumes I think were higher than what people expected.”
More at Reuters
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