Brazil's Cosan says to help "neighbor" Copersucar ship sugar
SAO PAULO Oct 24 (Reuters) - Brazilian sugar and ethanol producer Cosan SA Indústria e Comercio plans to help competitor Copersucar export sugar through a neighboring terminal while Copersucar rebuilds from a fire that damaged its operations at Santos port.
Cosan is developing a plan to take some of the burden off Copersucar, the world's largest sugar and ethanol trader, as it rebuilds five warehouses that were destroyed last week, said Rubens Ometto, chairman of Cosan's board.
"As neighbors of Copersucar we are making investments to help them export in a manner that will cause the least number of problems possible," he told journalists in Sao Paulo on Thursday, without giving specifics.
Copersucar this week declared force majeure on sales to third-party exporters with contracts to ship through its Santos Port terminal, including Bunge Ltd and Louis Dreyfus, pushing ICE sugar futures to one-year highs.
Market participants have suspected Copersucar would try to ship some of this season's sugar through the neighboring Rumo terminal, controlled by Cosan, at Santos. It is also likely to send more sugar farther south to Paranagua port.
Cosan controls the world's biggest sugarcane processor, Raizen SA, jointly with Royal Dutch Shell Plc.