|Bid||0.00 x 800|
|Ask||0.00 x 900|
|Day's Range||55.03 - 55.75|
|52 Week Range||47.26 - 62.92|
|Beta (3Y Monthly)||0.88|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 30, 2019|
|Forward Dividend & Yield||2.00 (3.59%)|
|1y Target Est||66.44|
(Bloomberg) -- Bunge Ltd. has reorganized its trading business as one of the world’s top agricultural commodity merchants presses ahead with its restructuring plan, according to people familiar with the matter.After cutting jobs in Geneva and offering only about a third its staff in White Plains, New York, relocation to its new headquarters in St. Louis, Bunge has divided its trading business by product instead of region, said the people, who asked not to be identified because the information is private. The company named new heads of corn and wheat and divided responsibilities for the oilseeds business into three groups.Bunge, the ‘B’ in the storied quartet of crop giants collectively known as ABCDs, is responding to shareholder pressure as years of bumper crops curbed margins and reduced the volatility traders need to thrive. Chief Executive Officer Greg Heckman said earlier this year that the company needed to shrink and that he expected most of the restructuring to be completed by mid-2020.Bunge appointed Nicolas Evrad as the new head head of corn, and Alejandro Boquete is leading wheat trading, the people said. Rossano De Angelis is now managing the oilseeds-crushing business in South America and Diego Rasteletti in North America. Diego Fernandes is overseeing the business at destination, or importing countries including China and Europe, the people said.Bunge declined to comment.Heckman has said he would work to centralize Bunge’s activities, shifting away from its regional structure in order to simplify the company and speed up decision making. Since taking the top job earlier this year, he has already replaced the company’s chief financial officer and brought in a chief risk officer. Last week, Bunge appointed a new chief legal officer, completing the CEO’s strategy for the senior management team.Bunge shares added 0.4% to $55.42 at 9:40 a.m. in New York, snapping three days of losses.(Adds shares in last paragraph.)To contact the reporter on this story: Isis Almeida in Chicago at firstname.lastname@example.orgTo contact the editors responsible for this story: Tina Davis at email@example.com, Millie Munshi, Patrick McKiernanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- For years the agriculture industry has been expecting a wave of consolidation that just hasn’t come. To battle razor-thin margins, the world’s top crop traders have come up with a new strategy: working together.Rivals Archer-Daniels-Midland Co. and Cargill Inc. now have a soybean joint venture in Egypt and recently swapped grain elevators in the U.S. Midwest. The two firms, along with Bunge Ltd., Louis Dreyfus Co., Glencore Plc and China’s Cofco International Ltd. are also teaming up in a blockchain technology project that will streamline shipping transactions and reduce costs.“The name of the game in traditional ag services and oilseeds is consolidation,” Ismael Roig, ADM’s president for Europe, Middle East and Africa, said Wednesday at the Global Grain conference in Geneva. “Consolidation is easier said than done, and there aren’t many large companies with which you can do a large consolidation, so what we’ve been working on is a lot of joint ventures and alliances.”The buzz about consolidation has waned since President Donald Trump’s trade wars hurt companies’ ability to forecast trends and therefore properly value assets. At the same time, Glencore’s agriculture unit, which had previously approached Bunge, has gone quiet amid a Department of Justice investigation into the parent company. Chris Mahoney, the chief executive officer that laid out Glencore’s agriculture ambitions, also retired.Agricultural commodity merchants have struggled to make money as years of bumper crops curbed the volatility traders need to thrive. At the same time, competition has increased as more companies have entered the market. That spurred speculation the industry would consolidate in megamergers.“One of the ways to do it is to try to consolidate through joint ventures, sharing best practices, so you are getting these minor areas where companies are working together,” said Jonathan Kingsman, author of ‘Out of the Shadows: The New Merchants of Grain,’ a newly launched book about agricultural commodity traders. “This will continue because the megamergers can’t happen at the moment.”ADM plans to focus on digesting recent acquisitions after buying the animal nutrition unit of France’s InVivo for about $1.8 billion, a deal that was completed earlier this year, Roig said. Juan Luciano, who leads the Chicago-based firm, said earlier this year that ADM’s five-year plan was low risk and excludes deals above $100 million or $200 million.“With the level of acquisitions that we had, I don’t think you see ADM being a very aggressive investor in the next few years,” Roig said, adding that the firm was focused on better utilizing its grain and oilseeds assets, driving efficiencies and growing organically.The agriculture industry is just now starting to follow the path of energy markets, where companies have established partnerships and joint ventures to help spread risk and reduce costs. Roig cited a study of more than 300 oil projects, of which 70% were joint ventures.While the mega mergers haven’t happened, there are still medium and small deals taking place. Crop trader Andersons Inc. this year completed a $300 million acquisition of Lansing Trade Group. Louis Dreyfus recently sold all its inland elevators in Canada to Parrish & Heimbecker.“These discussions are happening a lot, but it’s more about swapping than outright consolidation or big trades,” Pat Bowe, chief executive officer of Andersons, said in an interview in Chicago last week. “The blockbusters? On that front it’s kind of quiet, but I think swaps and individual asset trades will continue.”(Updates with comment in sixth paragraph.)To contact the reporter on this story: Isis Almeida in Chicago at firstname.lastname@example.orgTo contact the editors responsible for this story: Tina Davis at email@example.com, Reg Gale, Pratish NarayananFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Add one of the world’s top agricultural commodity traders to the list of investors selling Beyond Meat Inc. shares.Bunge Ltd., the ‘B’ in the storied ABCD quartet of crop giants that have dominated markets for more than a century, said it “significantly decreased” its position in the faux-meat maker since insider-selling restrictions ended this week. General Mills Inc. also said it sold its holdings as a wave of selling sent Beyond Meat shares plunging 22% on Tuesday.“Since the lockup ended, Bunge has significantly decreased its position and will update the status of its investment when it reports its fourth quarter results,” Bunge said in an emailed response to Bloomberg questions following the release of earnings Wednesday.Beyond Meat’s sell-off followed a frenzied rally that drove the stock up as much as 840% back in July, helping White Plains, New York-based Bunge post a $125 million windfall in the second quarter. In the the three months ended Sept. 30, Beyond Meat shares retreated and Bunge booked a $10 million loss on its holding.As many as 46 million Beyond Meat shares became eligible for sale Tuesday, prompting a sell-off that was also fueled by concerns about new competitors. At least 1.5 million shares, traded in blocks of 25,000 shares or more, crossed on Tuesday after the restrictions on sales ended, according to data compiled by Bloomberg.The alternative-meat maker tried to reassure investors about the company’s long-term prospects in an earnings call Tuesday, while acknowledging the lockup expiry may cause some short-term volatility. Chief Executive Officer Ethan Brown, Beyond’s fifth-largest holder, said he won’t sell his shares anytime soon.“Why would I?” Brown said in an interview this week. “I’m entirely focused on long term,” he said, adding Beyond Meat can be “a $40 billion global protein company.”Bunge’s investment arm held 979,556 shares, or a 1.63% stake, before Beyond Meat’s IPO. In July, the firm took advantage of an early secondary offering -- which allowed it to sell shares months before the lockup expired -- and sold 72,709 shares at $160, filings show. The shares last traded at $89.24.(Updates with Beyond Meat CEO quote in seventh paragraph.)To contact the reporters on this story: Isis Almeida in Chicago at firstname.lastname@example.org;Tatiana Darie in New York at email@example.com;Deena Shanker in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Tina Davis at email@example.com, James Attwood, Millie MunshiFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Bunge (BG) delivered earnings and revenue surprises of 161.11% and -5.50%, respectively, for the quarter ended September 2019. Do the numbers hold clues to what lies ahead for the stock?
Agricultural merchant Bunge Ltd warned on Wednesday of a drop in annual profits due to mounting challenges to its grain trading and processing business from the U.S.-China trade war and a fatal pig disease in Asia, sending shares down more than 4%. The company reported better-than-expected third-quarter profits, driven by higher margins on its edible oil products in North America and Brazil. The U.S. farm sector has suffered for more than a year from tit-for-tat trade tariffs with Beijing, which have cut agricultural exports from North America.
WHITE PLAINS, N.Y. , Oct. 30, 2019 /PRNewswire/ -- Bunge Limited (NYSE: BG) Q3 GAAP EPS of $(10.57) vs. $2.39 in the prior year; $1.41 vs. $2.52 on an adjusted basis Results included ~$1.7 billion of ...
(Bloomberg) -- The biggest agricultural-commodity traders are getting squeezed.With U.S. grain exports expected to fall more than 20% in the 2019 crop year, Archer-Daniels-Midland Co., Bunge Ltd. and Cargill Inc. are making less money buying and selling crops. That’s according to S&P Global Ratings, which estimates trading and merchandising margins for the firms have fallen by more than 10% so far this year.The narrowing of margins comes as the trade war between the U.S. and China cuts demand for America crops. In addition, profits from processing soybeans -- which helped boost earnings last year -- have declined due to a recovery in South American crops and a slowdown in demand for soybean meal in Asia, where a deadly disease is cutting demand for the key ingredient in pig feed.“Most rated companies have a large global sourcing footprint, and higher export volumes in other regions should offset weaker U.S. exports,” Chris Johnson, an analyst at the ratings company, said in a report. “But earnings will still fall short of last year given the crush-margin outlook.”Investors will soon get some clarity on how much trade disputes and lower crush margins have affected the companies. Bunge, the ‘B’ in the storied quartet of agricultural commodity traders collectively known as ABCD, reports earnings on Wednesday. Quarterly results for ADM, the ‘A’, come out on Thursday.ADM’s exposure to the U.S. ethanol market, which has had negative margins for much of 2019, “remains a drag,” while oilseed crush margins “face a very difficult comparison to last year’s strong earnings,” according to the report. Both ADM and Bunge have negative exposure to U.S. origination and trading.Bunge said it wasn’t in a position to comment ahead of earnings, while ADM said the company didn’t have a comment. Cargill said it doesn’t publicly disclose margins.Protein BoostThe outlook for agricultural commodity traders is set to improve next year, as the spread of African swine fever means other countries will have to produce more meat to supply China. That will, in turn, boost demand for the soy meal that ADM, Bunge and closely held Cargill produce in the U.S., South America and Europe.“We believe such production should lead to higher meal demand for feed and is only the tip of the iceberg,” Johnson said. “That’s because China’s domestic pork supplies have yet to fall off sharply as increased pork slaughter has built up cold storage supplies in China, providing ample supply for the prepared food industry to process in 2019.”“By most estimates, cold storage inventories have shot up to five months of industry production capacity, suggesting much higher livestock demand in 2020 once those inventories are drawn down.”Many traders have also sought to diversify their businesses in recent years. Cargill has focused on expanding its beef business, while ADM has bet on animal nutrition and ingredients. Bunge, which is in the processes of restructuring its business, has so far kept a focus on oilseeds processing.Bolt-on DealsDisruptions in trade could mean more divestment ahead for the crop traders even if antitrust concerns and industry disruptions don’t point to “a natural consolidator,” according to the report.“We expect companies to accelerate the pace of transactions to shed or spin off under-performing assets or to partner and share resources rather than go all in on new investments,” Johnson said, citing Bunge’s joint venture with BP Plc in Brazil and ADM’s plan to spin of its dry ethanol mills.Mergers and acquisitions probably won’t accelerate much as growth comes largely from smaller capital investments and bolt-on deals from smaller segments such as alternative proteins and new feed supplements, according to the report.ADM announced it reached an agreement with Brazilian beef supplier Marfrig Global Foods SA to make oilseed-based burgers, while an investment in Beyond Meat Inc. boosted Bunge’s earnings last quarter.(Updates with ADM, Cargill responses in seventh paragraph.)To contact the reporter on this story: Isis Almeida in Chicago at firstname.lastname@example.orgTo contact the editors responsible for this story: Tina Davis at email@example.com, Millie MunshiFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
BP Plc is still looking to close its deal with Bunge Ltd to merge sugar and ethanol assets in Brazil in 2019, so the companies can go on to plan their operations together for the new cane season that starts in early 2020. BP's chief executive for biofuels, Mario Lindenhayn, told reporters on the sidelines of Datagro's sugar conference in Sao Paulo the oil major was just waiting for the green light of antitrust bodies in three countries, including China, to close the deal. "We already had the approval from Brazil and the European Union, and we are expecting remaining approvals still this year, that is the objective," Lindenhayn said.
Bunge (BG) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period […]
WHITE PLAINS, N.Y., Oct. 2, 2019 /PRNewswire/ -- Bunge Limited (BG) will announce its results for the quarter ended September 30, 2019, on Wednesday, October 30, 2019, prior to the market opening. If you are located outside the United States or Canada, dial +1 (412) 902-6510. To access the webcast, go to "Webcasts and presentations" in the "Investors" section of the company's website.
The United States and Japan sign limited trade deal, bringing relief to U.S.-China trade war affected farmers and ranchers. Here are three stocks that can boost your portfolio.
BUENOS AIRES/BEIJING, Sept 23 (Reuters) - China has approved soymeal exports from seven soybean crushing plants in Argentina, the South American country's agriculture ministry said on Monday. The announcement comes less than two weeks after Argentina, the top soymeal supplier, announced that China, the world's biggest soymeal consumer, would allow imports from the country for the first time following decades of talks. The plants approved for export include those owned by Bunge Ltd's Bunge Argentina, LDC Argentina, Cargill Inc , Molinos Río de la Plata, Renova, T6 and COFCO International Argentina, the ministry statement said.
Bunge (BG) has been upgraded to a Zacks Rank 1 (Strong Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
CHICAGO and WHITE PLAINS, New York and MINNEAPOLIS and GENEVA and ROTTERDAM, Netherlands, Sept. 19, 2019 /PRNewswire/ -- The industry-wide initiative to modernize global agricultural commodity trade operations announced today that another major partner, Glencore Agriculture Limited, has joined the effort. "We've been interested in the initiative from the very early days and we're excited now to join as a full partner," said Glencore Agriculture Limited CEO David Mattiske. "The digital platform this group intends to develop will leverage the newest technologies and has the potential to revolutionize our industry, making contract execution processes more efficient, more accurate and more transparent.
Farm groups and ethanol organizations are angered by the sharp increase in exemptions provided by the Andrew Wheeler-led Environmental Protection Agency to the oil refiners.
WINNIPEG, Manitoba/CHICAGO (Reuters) - Bunge Ltd, one the world's biggest grain traders, recently disclosed the 1.6% stake it had purchased in the fast-growing fake-meat startup Beyond Meat. The play looked smart after the stock surged more than 250% since the faux burger and sausage maker's initial public offering in May. Indeed, Beyond Meat's market capitalization of $9.9 billion is now larger than Bunge's, a 201-year-old firm with 31,000 employees. No wonder many top agricultural firms want to grab their cut of the booming market for plant-based fake meat.