Bunge Global
jumped more than 11% on Wednesday on the back of the Trump administration’s threat to cut off U.S. purchases of Chinese cooking oil.
Bunge is one of the largest soybean processors and cooking oil producers in the world. The stock’s year to date gains are roughly 18%.
President Donald Trump on Tuesday said the U.S. is considering “terminating business with China having to do with Cooking Oil” as a retaliatory action against Beijing’s refusal to buy U.S. soybeans. China was the top buyer of American soybeans for years but has not bought a single soybean from the U.S. since May amid its trade war with the Trump administration. The country has instead been buying the crop from Argentina and Brazil due to Trump’s high tariff rates on China.
Trump’s threat to China comes after China’s used cooking oil exports surged to record highs last year, with the U.S. accounting for 43% of the total export number.
