SAO PAULO Oct 24 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.