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UPDATE 1-Bunge cuts agribusiness earnings forecast amid grains glut

(Adds details on agribusiness)

Nov 1 (Reuters) - U.S. agricultural commodities trader Bunge Ltd on Wednesday cut its 2017 earnings forecast for its core agribusiness unit amid a four-year slump in grain prices due to a series of bumper harvests.

The company said it now expects earnings before income tax (EBIT) of $425 million to $500 million in its agricultural business, its biggest unit. The company had previously forecast EBIT at the unit to be between $550 million and $650 million.

Bunge, however, said it expects earnings to improve sequentially in the seasonally strong fourth quarter.

Rival Archer Daniels Midland Co reported a 44 percent drop in profit on Tuesday on restructuring and other charges and said it didn't see conditions improving next year.

Bunge said net income available to shareholders fell to $84 million, or 59 cents per share, in the quarter ended Sept. 30 from $116 million, or 83 cents per share, a year earlier.

Excluding items, Bunge posted a profit of 75 cents per share beating the average analyst estimate of 73 cents, according to Thomson Reuters I/B/E/S.

Net sales were flat at $11.42 billion. (Reporting by Akshara P in Bengaluru; editing by Anil D'Silva and Saumyadeb Chakrabarty)