A Bunge estimated this Wednesday (4) a adjusted profit for the current year below analyst expectations, as the volatility of commodity markets and tighter margins hurt the global grain trader.
Falling grain prices, weak crop processing margins and geopolitical tensions have eroded the sector’s profitability, hurting Bunge and other companies such as ADM and Cargill.
Bunge executives signaled in November last year that uncertainty over trade and biofuels policy would hurt fourth-quarter profits, as farmers who sell crops to the company and customers who buy their products have been reluctant to do deals beyond the short term.
Last month, Reuters reported that the Trump administration plans to finalize quotas for biofuel mix for 2026 until the beginning of March. Quotas were originally scheduled for the end of October 2025.
The delay postponed one of the government’s most important decisions on energy policy until 2026.
Without clarity on quotas, companies said they were forced to postpone business and spending decisions that determine production and margins.
Rival Archer-Daniels-Midland, whose operations are more concentrated in the US, forecast on Tuesday (3) an adjusted profit for 2026 below analysts’ expectations due to the postponement of US biofuels policy.
Bunge reported adjusted earnings of $1.99 per share for the quarter ending December 31, down from $2.13 per share a year ago but above analysts’ consensus estimate of $1.81 per share, according to data compiled by LSEG.
The Missouri-based company expects adjusted earnings per share of between $7.50 and $8.00 in 2026, compared to Wall Street expectations of $8.71.
