The extended closure of the Strait of Hormuz and extreme weather have jolted the price index for farm commodities to a two-year high as fertilizer headaches and the prospect of…
Iran War Impacts Boost US Agribusiness 2026 Outlooks
Reuters’ Karl Plume reported that “soaring crude oil markets have pushed soybean oil prices to the loftiest levels in more than three years, a boon for oilseed processors like Bunge Global and Archer Daniels Midland, which have seen North American soy crush margins swell to their highest since Russia invaded Ukraine in 2022.”
“The windfall is supporting profits for the agribusinesses and taking the sting out of rising energy costs for processing and shipping grain, as well as the global trade disruptions stemming from tariff battles and the Iran war,” Plum reported. “It is also prompting some analysts to raise their 2026 profit outlooks for the two bellwether grain traders, which are also benefiting from higher biofuel blending mandates released by the U.S. Environmental Protection Agency last month after a lengthy delay.”
Reuters’ Karl Plume and Katha Kalia reported that “U.S. agribusiness Bunge Global raised its full-year adjusted profit forecast on Wednesday, citing strong oilseed processing margins and an improved biofuel demand outlook after the U.S. raised its biofuel blending mandate.”
“The Missouri-based company said it expects full-year 2026 adjusted earnings per share in the range of $9.00 to $9.50, up from its previous outlook for $7.50 to $8.00, after reporting a first-quarter adjusted profit that topped Wall Street expectations,” Plume and Kalia reported. “Global grain prices have risen since the start of the Iran war, triggering a flurry of corn and soybean sales by farmers who squirreled away last year’s harvests due to weak prices and bolstering crop trading and processing volumes for Bunge. Soaring crude oil markets due to the war also sent soybean oil prices to the loftiest levels in more than three years, swelling crush margins for the world’s largest oilseed processor.”
“But tariff battles and impacts from the ongoing Iran war remain risks,” Plume and Kalia reported. “The war ‘has meaningfully disrupted global trade flows, logistics costs and supply chains,’ CEO Greg Heckman said in a conference call, adding that the conflict would continue to impact fuel and fertilizer prices and may alter what farmers plant in the next growing season.”
Oilseed Processing Currently Near Capacity
“Oilseed processing has been a lucrative business for agribusinesses after soaring demand for making biofuel from plant oils like soyoil ignited the largest-ever U.S. crushing expansion in recent years,” Plume reported. “Elevated soyoil prices may continue to support robust crush margins as crude oil prices remain high due to global supply disruptions caused by the Iran war.”
“But the benefit for soy crushers is limited as the processing pace is already at near-maximum capacity, while high construction costs, including tariffs on steel and aluminum and higher interest rates than a few years ago, are discouraging further expansion. New plant construction normally takes at least three or four years from concept to opening,” Plume reported. “One new crush plant is due to open later this year, and two expansions of existing plants are also expected to come online, according to processing industry sources.”
Syngenta Reports Sales Growth in Q1
Reuters reported that “Swiss-based seeds and agrochemicals company Syngenta Group on Thursday reported slightly higher sales and profit during its first quarter due to strong growth in China and efficiency gains.”
“The Chinese-owned company, which is planning a flotation on the Hong Kong Stock Exchange, said its sales increased by 2% to $6.4 billion in the first three months of the year,” Reuters reported. “Earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 5% to $1.4 billion, said Syngenta, which competes with U.S.-based Corteva and Germany’s BASF and Bayer.”
“Crop protection sales rose by 3%, supported by the strong growth in China and Europe, while sales in Syngenta’s seed business rose by 7%,” Reuters reported. “Syngenta’s China business increased sales by 1%. When the effect of its exit from the grain trading business was removed, sales grew by 11% compared with a year earlier.”
