Bunge nearly doubled its profit crushing soybeans. And Brazil helped
Profit of US$318 million, up 91.6%, on better processing margins in the US, Argentina and Brazil.
To save you time3
- How much did Bunge earn?
- US$318 million in Q3, 91.6% more than the US$166 million a year earlier.
- Where did it come from?
- Better processing margins in North America, Argentina and Brazil. Soybean adjusted EBIT was US$565 million.
- Any losses?
- Yes: US$82 million tied to selling two Brazilian sugarcane mills to Cofco.
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Bunge, one of the world's biggest traders, nearly doubled its Q3 profit. The engine: soybean crushing.
The numbers
- Attributable profit: US$318 million, up 91.6% (from US$166 million).
- Soybean adjusted EBIT: US$565 million.
- Stronger processing in North America, Argentina and Brazil.
The detail
The company booked US$82 million in losses on selling two Brazilian sugarcane mills to Cofco. It's exiting cane to focus on what's making money: grain and oil.
How it fits the rest of agribusiness
Note the contrast: those who crush soybeans are winning; those who buy meal to raise animals (like meatpackers) have tight margins. Same bean, opposite ends of the chain.
What I'd watch
Crush margins in coming quarters. While they're fat, traders compete for soybeans, which helps port prices for Brazilian growers.
