Cosan is in Sugar Rush, Despite The Brazilian Weather

Cosan is in Sugar Rush

There is an optimistic outlook for Cosan in the Sugar and ethanol prices despite foreseen setbacks to world production.

Brazil, being the top producer of sugar, was acknowledged by Cosan where the 2017-2018 came processing season begins in April, and even stated that the weather has been favorable, for the production.

However, that does not imply a significant change from the 2016-2017 reports when it was targeted a crush of 59.0m-61.0m tons and has achieved 59.4m tons by the end of December.

Paula Kovarsky, Cosan investment relations officer told investor that “the market seems to be a little bit more optimistic about the Brazilian Crop”

In other news, Brazil, The ethanol supply and demand forecast remains in a tight belt, which allowed the prices of biofuel to trade with less of discount to gasoline than they have historically.

Cosan at the end of December Hedged 1.78m tons of sugar for 2017-18 at 17.3 cents a pound, equivalent to R$0.70 per pound. Those numbers represented an increase of 388,000 tons on the end-of December volume, and was equivalent to a “bit over 50% of our exportable volumes.”

The figure was a tad bit higher than the 1.71m tons of hedged forward for 2016-17 as of the end of December 2015. The company also stressed the low level of investment being made in fresh capacity by mills still struggling to overcome historic debt problems, and used the money earned from the harvest for repaying and servicing borrowed funds.

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