Karl Plume and Arunima Kumar

(Reuters) -Global farm commodities trader Bunge On Wednesday, Ltd reported a 17.1% increase in its fourth quarter adjusted profit. This was due to large oil seed crops in North America or Europe as well as strong demand for processed meat and oil.

The company predicted that this segment’s strength would continue to grow in 2022 due to rising demand for biofuel and food, but it will likely fall short of last year’s record.

Bunge provides the most up-to-date information about how multinational grain companies have adapted to shifts of demand and disruptions in their supply chains caused by COVID-19.

Bunge and rival agribusinesses Archer-Daniels-Midland Co, Cargill Inc and Louis Dreyfus Co — known as the ABCD quartet of grain trading giants — are now benefiting from improving demand for food and renewable fuel as some pandemic restrictions are easing.

Traders are however facing steeply rising raw materials costs. Oilseed and grain prices have risen due to the likely South American harvest deficit, but energy costs remain near multi-year records.

Due to severe weather, forecasters are reducing Brazil’s harvest estimate. Brazil is the top exporter of soy and a major supplier of corn. The harvest outlook in Argentina, a neighboring country has been reduced by drought.

Bunge anticipates 2022 adjusted earnings at least $9.50 per Share, which is the second highest operational performance the company has ever seen in its history.

St. Louis’ Missouri-based company reported adjusted net income at $3.49 per sen in the third quarter. That compares with $455m or $3.05 per spo share a year prior.

Refinitiv Eikon data revealed that this was above the consensus analyst estimate at $2.87 per share.

The revenue totaled $16.683billion, an increase of $12.61billion a year ago and more than the analyst estimate at $15.167billion.