A transport truck exits the Bunge facility, which is part of the company’s agricultural and food processing operations, in Hamilton, Ontario, Canada, Jan. 27, 2025.
Carlos Osorio | Reuters
Bunge Global jumped more than 11% on Wednesday on the back of the Trump administration’s threat to cut off U.S. purchases of Chinese cooking oil.
Bunge is one of the largest soybean processors and cooking oil producers in the world. The stock’s year to date gains are roughly 18%.
President Donald Trump on Tuesday said the U.S. is considering “terminating business with China having to do with Cooking Oil” as a retaliatory action against Beijing’s refusal to buy U.S. soybeans. China was the top buyer of American soybeans for years but has not bought a single soybean from the U.S. since May amid its trade war with the Trump administration. The country has instead been buying the crop from Argentina and Brazil due to Trump’s high tariff rates on China.
Trump’s threat to China comes after China’s used cooking oil exports surged to record highs last year, with the U.S. accounting for 43% of the total export number.
Trade tensions between China and the U.S. have escalated in recent days. Late last week, President Donald Trump threatened to impose an additional 100% tariff on Chinese imports. That came after China placed new export controls on rare earth minerals. China this week then moved to tighten its grip in the global shipping space by sanctioning five U.S. subsidiaries from South Korea’s Hanwha Group.
Bunge earlier Wednesday also gave a full-year forecast that reflects its merger with grain and oilseeds processor Viterra. The company said it expects to earn $7.30 to $7.60 per share, excluding items, while analysts polled by FactSet expected $7.39 per share. Still, that appeared to be better than many investors feared.
Bunge and ADM stock performance over the past year.
Shares of Archer-Daniels-Midland, another large American oilseed processor, also rose 1.5% after Trump’s threat.
