*

Soy crush margins improved late in Q2 on soybean price

drop,

soyoil price rally

*

Trade tensions, biofuel policy uncertainty impact

agribusiness

profits

*

Bunge maintains 2025 EPS outlook of $7.75

*

Bunge to update guidance before Q3 results to include

Viterra

merger

(Adds details and background, adds CEO and analyst quote,

updates shares)

By Karl Plume

July 30 (Reuters) - U.S. grain trader and processor

Bunge Global ( BG ) reported a smaller-than-expected drop in

second-quarter profit on Wednesday after soy crush margins

jumped late in the quarter.

The world's largest oilseed processor benefited as soybean

prices dropped and soyoil prices rallied on favorable biofuel

policy moves in the United States and Brazil.

Better results in Bunge's grains and oils merchandising

business also blunted the negative impact from ongoing global

trade uncertainty as U.S. President Donald Trump's tariff

threats upended global commodity flows.

Bunge shares were up 2.85% at $78.56 in early trading.

"We successfully navigated a highly complex period, both

internally and externally, and delivered better-than-expected

results for the quarter, especially given the market

conditions," CEO Greg Heckman said.

The earnings beat came as Bunge secured final regulatory

approvals for its long-delayed deal to acquire grain handler

Viterra, a transaction that officially closed at the start of

the third quarter on July 2. It also completed the sale of its

U.S. corn milling business.

Bunge maintained its 2025 earnings guidance of $7.75 per

share, which would be its lowest in six years, but said it would

update it to include the Viterra merger prior to reporting

third-quarter results.

Bunge and agribusiness peers including

Archer-Daniels-Midland ( ADM ) and Cargill have seen profits

erode in recent quarters due to ample global crop supplies and

thinning margins.

Trade tensions stoked by Trump's tariffs have further disrupted

trade flows as importing nations bought hand to mouth amid the

U.S. president's shifting deadlines for imposing duties.

Meanwhile, biofuel policy uncertainty dented demand for

green energy feedstocks like soybean oil, although proposed

increases for biofuel blending in the U.S. and Brazil was

supportive in the longer term for Bunge.

"We expect challenging conditions to persist," said CFRA

analyst Arun Sundaram, citing tariffs and inflation. "We

anticipate more clarity on biofuel policy in coming quarters,

which could provide some relief to the current soft macro

environment."

Bunge posted an adjusted profit of $1.31 per share for the

three months ended June 30, compared with analysts' average

estimate of $1.14, according to data compiled by LSEG.