Bunge stock soars after President Trump considers embargo on Chinese edible oils

Bunge Global It soared more than 11% on Wednesday on the Trump administration’s threat to halt U.S. purchases of Chinese cooking oil.

Bunge is one of the world’s largest soybean processors and edible oil producers. The company’s year-to-date growth rate is about 18%.

President Donald Trump said Tuesday that the United States is considering “suspending transactions with China related to edible oils” in retaliation for Beijing’s refusal to buy U.S. soybeans. China has long been the biggest buyer of U.S. soybeans, but amid a trade war with the Trump administration, it has not bought a single soybean from the U.S. since May. Because of President Trump’s high tariffs on China, the country is buying crops from Argentina and Brazil instead.

President Trump’s threat to China comes after China’s exports of used cooking oil soared to a record high last year, with the United States accounting for 43% of total exports.

Trade tensions between China and the United States have intensified in recent days. Late last week, President Donald Trump threatened to impose 100% tariffs on imports from China. This comes after China imposed new export restrictions on rare earth minerals. Then, this week, China imposed sanctions on five American subsidiaries of South Korea’s Hanwha Group, in a move to strengthen its dominance in the global shipping sector.

Bunge also released full-year forecasts on Wednesday, reflecting its merger with grain and oilseed processor Viterra. The company expects earnings per share, excluding items, to be between $7.30 and $7.60, compared with analyst estimates compiled by FactSet of $7.39 per share. Still, it looks better than many investors feared.

shares of Archer-Daniels-Midlandanother major U.S. oilseed processing company, also rose 1.5% following President Trump’s threats.