MercoPress. South Atlantic News Agency
Fire ravages Brazil’s main sugar terminal paralyzing operations and boosting prices to a year high
The fire ignited 180,000 tons of sugar - roughly 10% of Brazil's monthly sugar exports A fire in Santos ravaged Copersucar's sugar terminal in Brazil, paralyzing operations of the world's biggest sugar trader and putting 10 million tons of export capacity offline for six months or more.
The fire hit all of Copersucar's warehouses at the Santos port, igniting 180,000 tons of sugar - roughly 10% of Brazil's monthly sugar exports, and driving prices of the sweetener to a one-year high on global markets.
The loss of nearly all of its port capacity will send Copersucar scrambling to lease or rent terminal space to cover its obligations to global buyers and exchanges in the coming months. Copersucar says nearly a fifth of the world's sugar exports flows through its trading desks.
”A conservative estimate would be six months to get this in operational form (again),“ said a US trader. ”The jewel in their crown has been effectively destroyed.”
Copersucar's rivals in Brazil will likely pick up some of the slack left by the fire and benefit from the extra export volume and improved sugar prices. The fire did not affect terminal operations at other exporters at Santos, such as Cosan SA, Sao Martinho SA or Noble.
The disaster adds one more bend to the tortuous path that Brazilian agricultural products must take to global markets. Potholed roads, scarce rail transport and backed up ports already undercut margins of Brazilian sugar and grain producers and cause headaches for global commodity markets.
Top Comments
Disclaimer & comment rules-
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Read all commentsWe are much larger. We will continue to control the prices of almost everything the world eats.
Oct 19th, 2013 - 05:08 pm 0Brasil is Brazil!
One day you will be allowed to leave the institution you are staying at and leave brazil and see the world for what it is not and just how bad brazil compares.
Oct 19th, 2013 - 05:27 pm 0may Francis bless you and all the little girls in brazil.
@1 Brasileiro
Oct 19th, 2013 - 06:10 pm 0“The disaster adds one more bend to the tortuous path that Brazilian agricultural products must take to global markets. Potholed roads, scarce rail transport and backed up ports already undercut margins of Brazilian sugar and grain producers and cause headaches for global commodity markets.”
Yes, Brasileiro, the ONLY way you affect the market is when you have a fortunate harvest or when you have a disaster.
Mr Market decides what happens to the market. We have had this post before but you didn't understand it then and I doubt you will understand it now.
Brazil cannot and will never control the market. Mr Market is all about supply and demand, if Brazil cannot supply, others will and make a little more profit. We, the consumers, will pay for Brazil’s failures and Brazil will pay by letting other market suppliers flourish instead of them. It was always thus.
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