MARGIN CALLS AFFECT EVEN THE LARGEST TRADERS

Bunge Seeks To Raise $500 Million To Cover Cost Of Soybeans

NEW YORK (Dow Jones)-Bunge Finance, a unit of agricultural giant Bunge Ltd. (BG), recently sought to sell a $500 million bond offering to finance purchases of soybeans, which have skyrocketed in price by 70% over the last year.

The company, which processes soybeans and other agricultural commodities, will use the proceeds of the 10-year offering to cover higher soybean carrying costs. The price of soybeans recently hit $10.64 per bushel, substantially above historical norms of $5 to $6, and the highest level since July 1988. The price increase is due to surging demand, notably from China, as well as a smaller 2003 crop in the U.S., Argentina and Brazil.