Commodities reporter
Reese's Feed
Dec 2, 2013

Vale pares investment budget for third straight year

SAO PAULO/RIO DE JANEIRO, Dec 2 (Reuters) – Vale SA
lowered its investment budget for a third
straight year as the world’s No. 2 mining company bolstered
efforts to focus expansion on its main iron ore business.

Vale said on Monday it had set a 2014 capital spending plan
at $14.8 billion, down 9.2 percent from 2013. About 80 percent
of spending next year will go to develop new iron ore projects
and for rail, port and other logistics needed to move its
products to market.

Dec 2, 2013

Petrobras fuel policy confirms Brazilian ethanol mills’ fears

SAO PAULO, Dec 2 (Reuters) – Petrobras’ move not to adopt a
transparent policy for how it sets domestic fuel prices will
discourage ethanol industry investment as it shows the firm is
still controlled by the government, ethanol industry officials
and analysts said.

Petrobras, which is part state-owned, on Friday said it
would not reveal when or how it would adjust local fuel prices,
essentially carrying on a policy already in place and
disappointing market expectations it would start to disclose
such information.

Oct 30, 2013

Petrobras pitches new fuel pricing scheme as losses mount

SAO PAULO (Reuters) – Brazil’s state-run oil company Petrobras (PETR4.SA: Quote, Profile, Research, Stock Buzz) said on Wednesday it has asked the government to return to a transparent domestic fuel pricing policy in the wake of the latest quarter of dismal earnings.

Petrobras said in a market filing it has proposed a methodology to its government-controlled board that would automatically adjust domestic diesel and gasoline prices to international prices, without exposing local consumers to the volatility of international price swings.

Oct 27, 2013

Brazilians, Colombians acquire taste for gourmet coffees

SAO PAULO/BOGOTA, Oct 27 (Reuters) – Enticed by espresso and
lured by lattes, more Brazilian and Colombian consumers are
waking up to the aroma of top notch coffees their farmers have
traditionally produced for the cafés and grocery shops of
developed nations.

Trendy chains like Starbucks Corp, brands like Juan
Valdez that represents Colombian growers and in-home espresso
machines marketed by Nestle SA are some of the
pioneers transforming the coffee consumption habits of the two
countries’ combined populations of nearly a quarter billion
people.

Oct 25, 2013

Bunge may struggle to lure suitors for loss-making sugar mills

NEW YORK/SAO PAULO (Reuters) – When Bunge Ltd (BG.N: Quote, Profile, Research, Stock Buzz) bought five sugar mills in Brazil’s Sao Paulo state four years ago for $1.5 billion, they were considered the crown jewels of a burgeoning biofuel industry.

Now, they may be little more than millstones, hard-to-sell assets at a time of crushed margins and weak prices.

Oct 21, 2013

Brazil sugar export space to remain tight after terminal fire

SAO PAULO, Oct 21 (Reuters) – A fire on Friday at
Copersucar’s sugar terminal, the largest in Brazil, means the
company is likely to need to find space elsewhere from which to
export the sweetener next cane season while it rebuilds the
warehouses.

Copersucar lost 180,000 tonnes of sugar, or 10 percent of
Brazil’s monthly exports to the fire. With global markets flush
with a surplus in sugar, the destruction its five warehouses is
a bigger challenge for the company and for sugar importers.

Oct 18, 2013

Brazil fire destroys one of world’s biggest sugar terminals

SAO PAULO (Reuters) – A fire ravaged Copersucar’s sugar terminal in Brazil on Friday, paralyzing operations of the world’s biggest sugar trader and putting 10 million tonnes of export capacity offline for six months or more.

The fire hit all of Copersucar’s warehouses at the Santos port, igniting 180,000 tonnes of sugar – roughly 10 percent of Brazil’s monthly sugar exports – and driving prices of the sweetener to a one-year high on global markets.

Oct 18, 2013

Fire engulfs one of world’s biggest sugar terminals in Brazil

SAO PAULO, Oct 18 (Reuters) – Fire on Friday destroyed most
of the infrastructure at Copersucar’s sugar terminal in Brazil,
one of the biggest in the world, likely putting 10 million
tonnes of export capacity offline for up to six months until
repairs are made.

Santos port authority Codesp, which manages day-to-day
operations at Brazil’s main port, said the fire started in the
conveyor system, which transports sugar through Copersucar’s
warehouses, around 6 a.m. Brasilia time (0900 GMT).

Oct 3, 2013

Brazil’s OGX says field may have third of expected oil

RIO DE JANEIRO/SAO PAULO, Oct 3 (Reuters) – Brazil’s OGX
Petróleo e Gás Participações SA said on Thursday its Tubarão
Martelo offshore oil field has 87.9 million barrels of
“probable” oil equivalent, less than a third of the total it
called recoverable when it declared the area commercially viable
last year.

Tubarão Martelo may be the last chance for OGX to
generate enough cash to sustain long-term operations after
disappointing output from its first field, Tubarão Azul.

Oct 1, 2013

Brazil’s rapid recovery in sugar output to slow -Unica

SAO PAULO, Oct 1 (Reuters) – Rapid growth in Brazilian sugar
and ethanol output will slow to a trickle in coming seasons now
that investments in new mills have dried up, the main cane
industry association said in its latest revision of the 2013/14
crush.

In the third year of its worst crisis in decades, Brazil’s
main center-south cane region finally returned to record output
of 587 million tonnes of cane this 2013/14 season, surpassing
2010/11 when the crush reached 557 million tonnes.

    • About Reese

      "I'm a ten-year Reuters commodities reporter in Brazil. The economic coming of age of the emerging markets has elevated the importance of the country's mineral and agricultural potential. After a decade here, I still feel as though I've only scratched the surface in understanding the country's wealth and diversity in commodities markets ranging from soybeans, sugar, coffee and orange juice to iron ore, petroleum and timber."
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