UPDATE 3-Bunge reports Q1 loss, shares drop sharply

* Q1 net loss $1.76 per share, net sales down 26 pct

* Poor fertilizer margins, weak soymeal demand hurt

* Expects better second half 2009, but lowers forecast

* Shares down as much as 14 percent (Recasts, adds quotes, share price, details)

By Karl Plume

CHICAGO, April 23 (Reuters) - Shares of Bunge Ltd (BG.N: Quote, Profile, Research) fell as much as 14 percent on Thursday after the oilseed processor and fertilizer producer reported a first quarter loss due to poor fertilizer margins and weak animal feed demand.

Widely missing Wall Street forecasts, it was the second consecutive quarterly loss for New York-based Bunge, which has suffered along with the wider agribusiness sector amid tight credit markets and recession-weakened demand for raw materials.

Privately owned giant agribusiness Cargill Inc [CARG.UL] earlier this week reported that its latest quarterly profit fell 68 percent amid pressure from the weak economy.

Bunge's weaker-than-anticipated first-quarter performance and its outlook for challenging near term market conditions prompted the company to cut its full-year earnings per share forecast to $4.90 to $5.40 from its previous range of $6.90 to $7.40.