commodities | Earnings News | On the Move

Bunge +7.5% as it expects boost from North American crop harvests

|About: Bunge Limited (BG)|By:, SA News Editor

Bunge (BG +7.5%) is surging despite reporting weaker than expected Q3 earnings, largely attributed to sluggish crop sales by Brazilian farmers, as CEO Soren Schroder says “a solid fourth quarter is in sight and we expect significant growth in 2017."

Bunge believes South American farmers’ reluctance to part with corn and soybeans at current low prices will be countered by the glut of grain being brought off farms in the U.S. and Canada, bolstering its shipping and processing businesses.

Schroder says he expects “a significant uptick” in 2017 earnings as conditions in South America return to normal and the company’s own cost-cutting efforts, which include ~$125M in improvements this year, take effect.

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