UPDATE 1-Fire breaks out at Brazil's Rumo sugar terminal at Santos port

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RIO DE JANEIRO, July 14 (Reuters) - A fire at Rumo sugar and grain terminal in Brazil’s Santos port, the largest port in South America, broke out at 4 a.m. (0700 GMT) on Thursday, restricting operations, said a spokesman for the company controlled by sugar and ethanol producer Cosan SA.

The blaze in a warehouse was controlled within an hour, but operations were partially affected, he said.

News of the incident in the world’s biggest sugar producing nation triggered a more than 4 percent rally in sugar prices .

Williams shipping service said the fire was at one of the conveyor belts that connects Rumo’s warehouse XX to XXII, used for receiving cargo.

It was the second fire at Rumo in as many years. (Reporting by Stephen Eisenhammer; Editing by Frances Kerry)