Commodity giant Bunge is capitalizing on supply chain volatility and trade shifts to gain volume and margin as demand for its soybean and soft seeds remains strong, as evident by the company’s second quarter 2026 earning results.
For its second quarter results ending June 30, Bunge’s net income was $678 million, compared to $354 million the same time last year, the company reported. Soybean processing and merchandising volumes were both up in the quarter at 11.52 and 8.046 million metric tons, respectively. Additionally, soft seeds processing and merchandising rose to 3.490 and 1.296 million metric tons, respectively.
The soybean processing and merchandising gains “were primarily driven by the North and South American value chains ... with the largest increase driven by the company’s greater production capacity in Argentina,” John Neppl, EVP and CFO at Bunge, said in an earnings call.
The soft seed processing refining segment experienced increases across all regions, and “higher merchandise volumes were driven by the company’s expanding global soft seeds origination footprint,” he added.
Bunge’s business is boosted by long-term market trends and global biofuel policies, increasing demand for its products and services, executives shared in the earnings call.
“Geopolitical tensions, shifting trade flows, and changing weather patterns across key growing regions are reshaping farmer behavior, crop availability, and increasing volatility. As a result, customers at both ends of the value chain are relying on us more than ever to help them navigate risk. This is not new territory for us. We have a long track record of managing market volatility and continuing to deliver for our stakeholders, all while growing our earnings,” Greg Heckman, Bunge CEO, elaborated.
He added, “Population growth and rising incomes are driving sustained demand for grain and oilseed products. Feedstock demand across our global processing network is also benefiting from the constructive [renewable volume obligation] in the U.S., along with growing biodiesel blend rates in other countries. Soy and soft seed oils are expected to contribute approximately one-half of global vegetable oil production growth over the next decade.”
Given the quarterly results, Bunge raised its full-year guidance from adjusted earnings per share from $9.00-9.50 to $9.25-9.75. The market was not swayed by the guidance raise as Bunge’s stock declined 8.26% to close at $107.78 on the day of the earnings call.
How Bunge is tracking geopolitical, trade changes
Bunge continues to monitor business headwinds, including how the Iran war and the Strait of Hormuz uncertainty could impact fertilizer availability, with Brazil and Australia expected to see the biggest impacts to crop yields, Heckman explained.
“The coming season is going to be the key one to watch here on the Brazilian farmer. They’ve had good application rates in the past. It could maybe have some impact this next year on Safrinha. We’ll want to watch that close. Australia, you saw them switching some from wheat to canola already. The concern overall now isn’t nitrogen, which has corrected itself on price. It’s a little bit more around phosphates. That’s the one we’ll be watching closely. In Argentina, if it persists that long term, they may not make the investment,” Heckman said.
This comes as Bunge is investing in sustainable fuel production in Brazil, having signed a supply agreement with Acelen to provide soybean oil feedstock to produce sustainable aviation fuel (SAF), Heckman noted. Additionally, Bunge is supplying certified-low ILUC CORSIA Brazilian feedstock to Petrobras and Vibra for SAF production, he added.
Also, Bunge is capitalizing on changing trade dynamics, like China developing a stronger relationship with Australia, Heckman noted.
“You may start to see more Australian canola move into China, and then we now have the capability then to make sure that the Canadian canola that was going there, that then works through our process. And so again, we’re balancing and able to continue to serve our customers and benefit different parts of our platform,” he elaborated.
