Jefferies Anticipates Bunge Limited Volume Growth

Jefferies reports that it expects Bunge Limited BG to see a return of system volume growth in 2011 driven by the uncertain global supply/demand picture and very favorable volume comparisons in 1H11. “Global coarse grain production falling short of consumption, drought in key world wheat regions and a smaller than expected U.S. corn crop have contributed to accelerated worldwide origination, transportation and storage of commodities,” Jefferies writes. “We expect this trend to continue in 2011 with a still uncertain supply/demand picture.” Equally as important, Jefferies notes, is that Bunge should benefit from very favorable volume comparisons in the Agribusiness segment though 2Q11 as the company laps tight soybean supplies & below-average Brazilian farmer selling. Bunge closed Wednesday at $61.51.