- The flow of basic foodstuffs from U.S. farms to overseas markets has yet to be disrupted by Pres. Trump’s talk of trade overhauls, Bunge (BG +9.8%) CEO Soren Schroder says after his company easily beat analyst estimates for Q4 earnings and revenues.
- While grain traders are watching for any signs of a shift arising from changes to U.S. trade policy, Schroder says "it's business as usual" as price and supply remain the dominant factor for companies such as BG and the governments and food companies purchasing U.S.-grown corn and other crops.
- The CEO says BG’s Mexican flour mills have in the past shipped in wheat from Russia and Canada, and could do so again if U.S. trade policy changes affect the flow of U.S. grain into Mexico, but replacing other U.S. agricultural products such as soybean meal, largely shipped into Mexico by rail, would be more costly and could create logistical headaches for Mexican importers.
- CFO Thomas Boehlert says large crops and expanding margins in South America should boost earnings in 2017, although the company expects the year to start off slow.