Why are Bunge and ADM raising their 2026 profit outlooks despite expected lower first-quarter earnings?

Bunge and ADM are raising their 2026 profit outlooks due to a strong oilseed processing outlook—driven by soaring soybean oil prices, elevated North American soy crush margins (the highest since Russia’s 2022 Ukraine invasion), and the U.S. EPA’s recently announced higher biofuel blending mandates, which removed prior uncertainty weighing on results; these positive factors, realized late in the first quarter, have led analysts like Heather Jones to significantly revise upward their full-year 2026 EPS estimates for both companies.

What is limiting further expansion in U.S. soybean crushing capacity despite high profitability?

Further expansion in U.S. soybean crushing capacity is limited because processing is already running at near-maximum capacity, while high construction costs—including tariffs on steel and aluminum—and higher interest rates compared to a few years ago are discouraging new plant development; additionally, new crush plant construction typically takes at least three to four years from concept to opening, with only one new plant scheduled to open later this year and two expansions of existing plants expected online soon.

Iran War Boosts Biofuels, Lifts US Agriculture Giants' Earnings

Apr 28, 2026

Soaring crude oil prices driven by the Iran war have elevated soybean oil values, boosting profits for agribusiness leaders Bunge and ADM. Analysts upgraded 2026 profit forecasts after new EPA biofuel mandates, despite near-maximum processing capacity.

reuters

2026-04-28

Iran War Boosts Biofuels, Lifts US Agriculture Giants' Earnings

2026-04-29

Bunge Boosts Earnings Outlook on Strong Processing Margins

2026-07-29

Bunge beats second-quarter profit estimates on strong processing margins

Iran War Boosts Biofuels, Lifts US Agriculture Giants' Earnings

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