File Photo
Global firm Commodities Merchant Bunge Limited (BG.N) reported a high quarterly consistent profit on Wednesday (April 27, 2022). Russia has boosted its full-year earnings forecast by 21% since the invasion of Ukraine due to strong demand and tight supply of essential crops.
The two-month war exacerbated already thin supplies of grain and oilseeds after weather-reduced crops in South America and other key production areas, boosting demand and lifting crop processing margins for Bunge.
The results mirrored strong earnings from rival Archer-Daniels-Midland (ADM.N) on Tuesday. Find more.
Bunge shares surged 5% to $120.80 on the New York Stock Exchange after reaching a record high last week, and were up almost 30% this year.
Bunge's results highlighted how global grains merchants have weathered surging crop prices and supply chain disruptions triggered by the Russia-Ukraine war. The two nations supply nearly a third of the world's wheat exports, a fifth of globally traded corn and around 80% of sunflower oil.
World grain and vegetable oil supplies will not recover from disruptions caused by the war for "a long period of time" so other growers and processors, particularly in South America, will play a greater role in tamping down soaring food inflation, Bunge Chief Executive Greg Heckman said.
"There will be a long tail on this because there is infrastructure that has been damaged. There are seaborne logistics that have to be untangled. There are waters that need to be de-mined," he said.
Bunge's Mykolaiv port facility sustained damage in fighting
last month, but company executives said on Wednesday that it did not appear to
be significant. Find more.
|Source: Online/SZK
Comment Now