Shares in Bunge jumped 5% after a recovery in its core agribusiness unit, spurred by brisk Chinese trade, helped the oilseeds and fertilizer group return to the black.

The US�based group said that grain and oilseeds handling and processing at the agribusiness divisions had "significantly improved" during the April-to-June period, after three successive weak quarters.

Strong soybean demand from China, which has imported record quantities of the crop this year, and an improved soy meal market fostered the revival, which took divisional operating profits to $448m.

While 17% lower than a year ago, the figure represented a significant improvement on the $18m reported for the first three months of 2009.

Fertilizer issue

The performance helped offset a $53m loss at Bunge's fertilizer division - the largest producer and supplier of nutrients in South America - reflecting a $121m writedown in the value of inventories to reflect weaker global prices.

"We continue to work through some remaining high-cost raw material inventory in our fertilizer segment," Alberto Weisser, the group's chairman and chief executive, said.

However, he added that he was "optimistic" for the second half of 2009, with the prospect of a rich US soybean harvest to keep crushing plants busy, and improved demand for fertilizer.

Jacqualyn Fouse, the group's chief financial officer, added: "We expect a strong second half of the year, with results weighed more heavily to the fourth quarter when the Northern Hemisphere harvest is well underway and our fertilizer economics have stabilised."

The group stuck by a full-year forecast of earnings of $4.90-5.40 a share.

Bunge shares stood 4.5% higher at $68.42 in afternoon trade in New York, after touching $69.18 earlier.

Forecasts beaten 

In the April-to-June period, group earnings came in at $313m, or $2.28 a share.

While 58% lower year on year, the earnings were better than the $0.90 a share that investors had expected.

Group revenues slipped 23% to $11.0m.