Bunge warns of lingering tightness in grain supply
Revenue totaled $14.79 billion, above Wall Street's expectations of $13.99 billion and $12.91 billion a year earlier.
Bunge shares closed at $68.30 on the New York Stock Exchange on Wednesday and are down 6 percent since the beginning of the year. Shares of rival ADM, which is due to report quarterly earnings on Tuesday, are up 18 percent so far this year.
In the United States, farmers, who are preparing to plant the corn and soybeans they will harvest in the fall, are hesitant to sell any crops they have in storage after the drought caught them by surprise last summer.
Cold, wet weather has slowed spring planting in the Midwest, raising uncertainty about prospects for the harvest this year.
"Our oilseed processing and merchandising operations in North America and Europe are being impacted by the combination of tight supplies and farmers holding on to their crops until they have more visibility into the progress of their new crops," said Drew Burke, Bunge's chief financial officer.
Bunge said earlier this month that it planned to idle a processing plant in Kansas from May 1 until the autumn harvest due to low supplies of the oilseed.
Many U.S. soy processors shut down for a week or two beginning in April to prepare machinery ahead of the fall harvest. However, seasonal downtimes could run longer this year as the worst U.S. drought since 1934 cut output last year, leaving supplies tight.
Bunge said earlier this month that it did not expect to shut down any other processing plants for an extended period of time but may have "interruptions" at other facilities.
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