Edition:
United Kingdom

Marcelo Teixeira

Quality coffee shortage trips up funds to send prices soaring

05 Dec 2019

* Central America, Colombia, Brazil all short of quality coffee

UPDATE 1-Cosan's subsidiary Raízen taking part in Brazil's refinery bidding round

03 Dec 2019

(Adds executives comment, context on Petrobras bidding round) By Marcelo Teixeira SAO PAULO, Dec 3 Brazilian energy group Cosan Ltd said on Tuesday its subsidiary Raízen is taking part in the bidding round organized by state-run oil company Petrobras for the sale of several refineries in the country. Cosan's Chief Financial Officer Marcelo Martins told analysts and investors Raízen was still at the analysis stage regarding the possibility of buying a refinery from Petrobras, and said that the return required would be quite high for the risk. Reuters reported last week that Raízen was among a group of investors selected for Petrobras in the bidding round for the first four refineries to be sold. In total, Petrobras, or Petroleo Brasileiro SA, plans to sell eight refineries in Brazil, including its large, recently built Abreu e Lima unit, as the company wants to focus on oil exploration (see table below). The company currently has a near refining monopoly in Brazil, so the plan will open a whole new area for private investment. Martins said the fact that Raízen, a joint venture between Cosan SA and Royal Dutch Shell Plc, controls a large fuel distribution business in Brazil is a key factor behind its interest in the refineries. "We would not have looked into this if we didn't have the distribution," he said. Raízen operates Brazil's second largest fuel distribution business, only behind BR Distribuidora, having a chain of gas stations across the country under the Shell banner. Among the aspects under evaluation for a possible refinery move, Martins mentioned the price of the asset, the potential for cost reduction once it takes the unit and the size of the return on the investment, which "should be high enough to maybe compensate the large risk of taking this type of investment". Cosan's Chief Executive Marcos Lutz said the outlook finally appeared more positive for the fuel market in Brazil, after basically three years of contraction. "The fuel market is reacting, we've seen sustainable growth in sales for the last two months, we see organic growth coming next year," he said. Larger fuel sales could boost margins, Lutz said, which have been tight due to the recent contraction. See below details of the refineries put up for sale by Petrobras: REFINERY LOCATION CAPACITY OPERATIONAL (STATE) (BPD) SINCE Abreu e Lima Pernambuco 230,000 2014 Landulpho Alves Bahia 323,000 1950 Gabriel Passos Minas Gerais 150,000 1968 Getúlio Vargas Paraná 207,000 1977 Alberto Rio Grande do 201,000 1968 Pasqualini Sul Isaac Sabbá Amazonas 46,000 1957 Lubnor Ceará 8,000 1966 Unidade Xisto Paraná 5,800* 1972 *tonnes of shale per day (Reporting by Marcelo Teixeira Editing by Chizu Nomiyama and Tom Brown)

BP, Bunge complete Brazil deal to form world's No.2 cane processor

02 Dec 2019

SAO PAULO British oil major BP Plc and U.S. commodities trader Bunge Ltd announced on Monday the completion of a deal to combine their sugar and ethanol operations in Brazil, creating the world's second largest cane processor.

BP, Bunge complete Brazil deal to form world's No.2 cane processor

02 Dec 2019

SAO PAULO, Dec 2 British oil major BP Plc and U.S. commodities trader Bunge Ltd announced on Monday the completion of a deal to combine their sugar and ethanol operations in Brazil, creating the world's second largest cane processor.

Brazil's president accuses actor DiCaprio of financing Amazon fires, offers no evidence

30 Nov 2019

SAO PAULO Brazilian President Jair Bolsonaro claimed on Friday that Hollywood star Leonardo DiCaprio financed fires being set in the Amazon rainforest, without presenting any evidence, the right-wing leader's latest broadside in casting blame over forest fires that have generated international concern.

Farm machinery makers, Brazil banks working on private financing - Deere

29 Nov 2019

SAO PAULO Agricultural machine manufacturers are working with banks in Brazil to avoid a repeat of slumping sales when public financing is expected to run out next year, the head of the local unit of U.S. tractor maker Deere & Co told Reuters on Thursday.

UPDATE 1-Brazil corn demand to jump in 2020; sharp drop in exports likely

28 Nov 2019

SAO PAULO, Nov 28 Domestic demand for corn is expected to grow 6% in Brazil in 2020, driven by increasing corn-ethanol production and buying from the meat industry, which uses the cereal to make livestock feed, Dutch bank Rabobank projected on Thursday.

UPDATE 1-Brazil to produce record coffee crop despite weather -Rabobank

28 Nov 2019

SAO PAULO, Nov 28 Brazilian farmers are expected to produce a record coffee crop in 2020, surpassing a previous all-time high reached in 2018, as output is seen reaching 66.7 million 60-kg bags, Dutch bank Rabobank projected on Thursday.

Carbon markets pioneer Moura Costa buys back EcoSecurities from Mercuria

27 Nov 2019

(This November 26 story corrects name of partner to Pablo Fernandez, not Pablo Martinez.)

Bid by U.S. fund Amerra for Brazil sugar mill fails to win creditor approval

19 Nov 2019

SAO PAULO A bid by U.S.-based fund Amerra Capital Management LLC to buy one of the mills from Brazilian sugar and ethanol producer Clealco failed to win approval from a group of creditors of the Brazilian company.

World News