25 July 2013 21:42 [Source: ICIS news]
HOUSTON (ICIS)--Bunge said on Thursday that it expects Brazil's growing farming sector to keep its plants well supplied with soybean crops.
Speaking during a Q2 2013 earnings conference call, company officials said they have been able to keep pace with the competition for the vital commodity, especially with Brazil having exporting a record amount of soybeans over the last quarter.
The crop harvest has been favourable for the region and exports have flowed better with the lessening of recent port disruptions.
“All our plants were operating, and the crush margins have generally been good in the last quarter,” said Soren Schroder, Bunge CEO. “In the case of Bunge, we made sure that all the beans that we had for export were directed to our own plants across the world, whether it's in China or Europe.”
Schroder said the quarter margins and volumes from Brazil were very good in light of the eventual declining returns from Europe and North America, where utilisation rates were low, causing the fixed cost/ton to rise.
"In the northern hemisphere, particularly in soft seed crush in Europe, margins were very poor. That's the only way to put it, sunseed in particular, but also rapeseed,” Schroder said. “And the grain handling volumes were just bad because of last year's drought. So Brazil outperformed, I would say, but Europe and North America wasn't able to compensate.”
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