Sugar Rush as Brazil Millers Speed Up Sales to Boost Profit
- Raizen increased forward sales 10-fold in second quarter
- Biosev sees prices boosting cash generation next season
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Brazil’s biggest sugar companies are locking in sales at the fastest pace in years amid record domestic prices, boosting projected profits.
Raizen Energia SA, a Royal Dutch Shell Plc and Cosan SA joint venture and the country’s top exporter, said it sold 954,000 metric tons of sugar for delivery in 2017 as of June. That’s a 10-fold increase from last year, and the biggest volume sold that far in the future since at least 2010, according to Cosan’s earning reports. Louis Dreyfus Co.’s sugar unit Biosev SA, the second-largest producer, has already sold about 645,000 tons in advance, or 40 percent of its projected exports, up from virtually zero a year earlier.