October 21, 2014
A third major fire at sugar terminals within the year has destroyed a sugar export terminal at Brazil’s Santos port this week which was 50-50 owned by Cargill Inc. and Biosev, the sugar division of Louis Dreyfus. The TEAG sugar terminal had the capacity to store 110,000 tons of sugar and at the time of the fire was storing 50,000 tons. In October 2013 Copersucar, Brazil’s largest sugar and ethanol trader, experienced extensive damage to its export terminal with a capacity of 10 million tons because of a fire but the company states that the majority of that capacity will be back online by April 2015. Cargill and Copersucar recently combined their global sugar and logistics assets which should allow Cargill to re-route sugar exports through Copersucar’s terminal. After previous terminal fires sugar markets have spiked by more than 5% in a day however prices have not reacted in the same manner to this fire as raders have learned to not over-react.
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