Bunge Limited is reporting a second quarter loss of $12 million while net sales rose 4.3 percent to $12.2 billion. The quarterly loss compares to a gain of $81 million for the same quarter a year ago. CEO Soren Schroder says part of the loss is attributable to a $125 million hedge loss in soybeans. “During the quarter as markets reacted to the evolving trade talks, we concluded a quick resolution would be negative to the value of forward soy crush capacity. As a result, we took the prudent step to position ourselves long in futures as a hedge. Futures subsequently went lower offsetting gains on our bean basis ownership. However, this provided us an opportunity to benefit from increasing our forward crush coverage at significantly better margins. This benefit will be visible in Q3 and Q4 as we execute on our soy crush capacity.”
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