Bunge has, for a second time, cut its forecasts for full-year earnings, blaming unexpectedly low fertilizer prices, including a false dawn in the phosphate market.

Shares in the group, the world's biggest oilseed processor, slipped nearly 5% in early deals.

Bunge, which is also the top-ranked supplier of fertilizer in South America, slashed to $3.10-3.50 per share, from $4.90-5.40 per share, its forecast for 2009 earnings.

Adjusted for changes in share numbers, the reduction equates to a cut to $397m-448m from $676m-745m.

Jacqualyn Fouse, Bunge's chief financial officer, said the cut reflected reduced hopes for fertilizer profits, "due to a softer pricing environment, both internationally and in Brazil".

'Lacklustre global demand'

The company said it expected a continuation of the conditions which in the July-to-September period dragged Bunge's fertilizer division to a $162m loss, from a $543m profit a year before.

An apparent rally in phosphate prices at the start of the quarter had fizzled out "on lacklustre global demand", Bunge chief executive Alberto Weisser, said.

Tax benefit

However, Bunge forecast that its core agribusiness unit, would manage a "strong finish" to 2009, helped by strong volumes of crops handled.

In the third quarter, the division posted profits down 34% at $353m, on revenues down 20% at $8.13bn.

Group earnings came in at $232m, down 1% year on year, as gains from foreign exchange and a tax benefit relating to weaker fertilizer profits helped balance the impact of a 24% slide to $11.3bn in revenues.

Bunge shares closed down 3.5% at $64.58 in New York.