Morgan Stanley Provided Color on Bunge, Equal-weight

Morgan Stanley provided color on Bunge (NYSE: BG). In a research report published today, Morgan Stanley stressed its optimism about Bunge's long-term outlook, in spite of high crop prices and volatility obstacles.

In the report, Morgan Stanley states, "We believe that supply dislocations, high crop prices, and volatility, should benefit Agribusiness margins in 2011, but that overcapacity will weigh on crush margins for most of the year. From a longer term perspective, agribusiness fundamentals remain attractive: an expanding middle class in the developing world and the resulting shift in dietary preferences toward meat coupled with mandatory US biofuels blending should keep commodity prices elevated and incentivize increased fertilizer use."

At the moment, Morgan Stanley has an Equal-weight rating on Bunge. On Thursday, Bunge closed at $73.40.