Bunge expects lower soybean crushing margins in the US, Brazil and Europe

Global agribusiness trader Bunge Global SA expects soybean crushing profitability to decline in the US, Brazil and Europe amid volatility in global agricultural markets, high production costs and shifts in international trade. According to Bloomberg, the company anticipates slightly weaker financial results in its soybean processing segment despite strong performance in the third quarter of 2026. Bunge Chief Financial Officer John Neppl said the agricultural sector is entering 2027 amid an exceptionally complex market environment marked by elevated uncertainty and geopolitical risks.

Additional pressure on agribusinesses comes from record diesel prices, rising fertilizer costs and disruptions to export flows. Conflicts in the Middle East and Black Sea regions continue to disrupt traditional supply routes for grains, oilseeds and agricultural inputs. Meanwhile, the buildup of substantial soybean and corn supplies during the US autumn harvest is putting pressure on prices as supply growth outpaces demand. According to Bunge, these conditions are complicating trade planning and making it more difficult to maintain stable crushing margins.

Despite the challenging market environment, Bunge maintained its full-year 2026 earnings guidance. The company expects adjusted earnings per share of $9.25–9.75. In the third quarter, adjusted earnings reached $2.56 per share, exceeding analysts’ expectations. However, Bunge revised its outlook for soybean processing results downward due to shrinking margins in the US, Brazil and Europe. Meanwhile, the company expects stronger performance in grain merchandising and milling, supported by prospects for large grain harvests in Australia and Canada, although supplies from the Black Sea region remain constrained.

China’s trade policy remains one of the key sources of uncertainty for the global soybean market. Bunge is closely monitoring Beijing’s commitment to purchase 25 mln tons of US soybeans annually through 2028. At the same time, Brazil continues to play a major role in supplying the Chinese market, while the competitiveness of shipments from different origins will depend on pricing conditions. According to Bunge CEO Greg Heckman, Brazilian soybeans will continue flowing to China whenever it makes economic sense, regardless of political agreements between countries.

Bunge noted that geopolitical tensions, changes in government trade policies and weather conditions continue to reshape global agricultural commodity flows. The company aims to offset some of these risks by redirecting shipments between regions and adapting logistics routes to changing market conditions. However, prospects for a recovery in soybean crushing margins will depend on the global supply-demand balance, energy costs, developments in the vegetable oil market and future trade dynamics between the US, Brazil and China.

Tags: Bunge, soybean, oilseeds, oilseed crushing