Commodities reporter
Reese's Feed
Sep 12, 2013

Big producers of mild arabica say coffee rust is under control

BELO HORIZONTE, Brazil, Sept 12 (Reuters) – Coffee rust,
which wiped out as much as 30 percent of some Central American
and Andean coffee crops recently, will take a smaller toll this
season on production of mild arabicas, the New York ICE
deliverable beans that roasters use to smooth out their blends,
officials and specialists said at a conference this week.

Colombia and Mexico, the two heavy-weight producers of the
region, will suffer no significant losses to the disease that
can destroy whole crops if left unchecked by spraying, causing
immature coffee fruit to drop off trees.

Sep 12, 2013

Arabicas seen struggling to win back big coffee blenders

BELO HORIZONTE, Brazil, Sept 12 (Reuters) – Despite plunging
arabica prices, the smoother coffee bean will struggle to regain
lost market share in big roasters’ blends after high prices over
the past several years drove them to less expensive robusta
substitutes, specialists said on Wednesday.

In the medium to long term, the prospects for cost efficient
arabica producers look bright, both for milder Central American
and Colombian washed beans as well as the massive body of
Brazilian naturals, participants at the IV International
Conference on Natural Arabicas said.

Sep 6, 2013

Brazilian oil firm OGX presses Batista for cash; shares soar

RIO DE JANEIRO, Sept 6 (Reuters) – OGX, the debt-laden
Brazilian oil company, said on Friday it has called in a promise
from controlling stakeholder Eike Batista to start injecting $1
billion into his empire’s flagship company while it renegotiates
debt.

The company’s stock surged on the news, closing up 27
percent at 0.52 real, and its bonds also reacted positively.

Aug 15, 2013

U.S. poultry margins of Brazil’s JBS to improve -CEO

SAO PAULO, Aug 15 (Reuters) – Brazil’s JBS SA,
the world’s largest meat producer, expects profit margins from
its U.S. poultry division to improve in the fourth quarter of
2013 due to a bumper corn harvest that will bring down feed
costs, Chief Executive Wesley Batista said on Thursday.

Residual high costs for corn and other feeds would likely
continue in the third quarter for Pilgrim’s Pride, the
company’s U.S. poultry unit, but then start to fall in the
fourth quarter, helping profit margins, he said.

Aug 14, 2013

Brazilian governor says state will sue Siemens for price fixing

SAO PAULO, Aug 13 (Reuters) – Brazil’s São Paulo state will
sue German engineering giant Siemens to recoup public
funds its governor said it lost to a cartel that fixed prices
for public transit construction, equipment and upkeep.

“We are going to open a case against Siemens for damages to
public coffers and the state of São Paulo and to demand total
reimbursement,” Governor Geraldo Alckmin told reporters on
Tuesday.

Aug 6, 2013

Brazil cane industry invests, just not in new ethanol production

SAO PAULO, Aug 6 (Reuters) – Brazil’s sugar and ethanol
industry continues to invest billions of dollars annually in
mechanization, warehouses, ports and biofuel pipelines, even
though new mills are off the table for now, local leaders in the
sector said on Tuesday.

In the heyday of Brazil’s ethanol industry, more than 30 new
mills opened in 2008/09, but over the past year, only two new
mills opened and they were largely carry through investments of
bigger, earlier projects. Mills can produce either sugar or
ethanol.

Jul 31, 2013

Exclusive: Frost damages nearly fifth of Brazil sugar cane crop: analyst

SAO PAULO (Reuters) – Last week’s frosts in southern Brazil damaged nearly a fifth of the unharvested cane crop in the principal growing region, an event likely to cut sugar exports from the world’s largest producer, agriculture research company Datagro said Wednesday.

Severe early morning frosts on July 24 and 25 in three of Brazil’s top sugar-cane states devastated large areas, Datagro President Plinio Nastari told Reuters. The cold blight comes at the peak the crushing season when more than half of Brazil’s expected record 590-million-tonne crop remains unharvested.

Jul 31, 2013

Exclusive: Frost damaged 18 percent of Brazil sugar cane crop – analyst

SAO PAULO (Reuters) – Last week’s frosts in southern Brazil damaged nearly a fifth of the 365 million tonnes of centre-south sugar cane yet to be harvested, potentially curbing output from the world’s largest exporter, industry research company Datagro said on Wednesday.

Datagro President Plinio Nastari told Reuters that severe frost on July 24 and 25 in southern cane growing regions may have killed entire fields, which would likely need to be replanted.

Jul 16, 2013

Brazil sugar mills follow local drivers in shift to ethanol

SAO PAULO, July 16 (Reuters) – Ethanol demand in Brazil rose
24 percent in June from a year ago, according to fuel
distributors, signaling a shift among motorists that will help
shrink the global sugar glut and reduce Brazil’s dependence on
gasoline imports.

As a global glut in sugar pushes prices near three-year
lows, Brazil’s cane industry association Unica is likely to
revise down its official forecast for sugar output from 35.5
million tonnes seen in April to no more than last year’s 34.1
million tonnes, Unica’s technical director, Antonio Padua
Rodrigues, said on Tuesday.

Jun 26, 2013

Brazil demand, rains counter dollar’s pull on sugar exports

SAO PAULO, June 26 (Reuters) – A strong dollar has prompted
Brazilian mills to sell sugar for export, but rain, growing
demand for ethanol and drought in the northeast have contained a
price surge of the sweetener on the international market for
now.

Accounting for half the global exports in sugar, Brazil is
in the peak of crushing a record 35.5 million tonnes of sugar
from its main center-south cane crop, according to the cane
industry association, Unica, which will release its latest tally
of the crush on Wednesday afternoon.

    • 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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