Bunge's strong processing margins helped it beat second-quarter earnings estimates

Bunge raised its full-year profit forecast on Wednesday, after exceeding Wall Street expectations?for the second-quarter earnings. This was aided?by strong performance s in its soybean and softseeds processing businesses amid improved market conditions.

Since the beginning of the Iran war, U.S. soybean and corn prices have increased sharply. This has prompted farmers to increase sales of grain that they had previously held back due to a prolonged period with low prices.

The price rally has spurred ?sales across the Midwest, with farmers moving ?corn, soybeans and ?wheat from storage bins to ethanol producers and major grain handlers such as Archer-Daniels-Midland and Bunge.

The war has also caused a rise in the price of crude oil, which is used to produce biofuels.

Sales of its soybean refining and processing were $12.07billion, up from $7.75billion a year earlier.

Softseed Processing and Refining Segment reported quarterly net sales of $4.09 Billion, compared to $1.53 Billion a year earlier.

The company has raised its forecast for 2026 to $9.25-$9.75 per share, from $9.00 to $8.50.

(source: Reuters)