UPDATE 3-Fire controlled at Cosan's Brazil sugar export terminal

lunes 4 de agosto de 2014 13:52 GYT
 

(Adds analyst quote, comment from Port)

By Reese Ewing

SANTOS, Brazil Aug 4 (Reuters) - Firefighters contained a blaze at Cosan SA's sugar facilities at the Port of Santos in Brazil on Monday, reducing storage capacity in the world's largest producer of the sweetener.

Cosan said in a statement that only one warehouse, controlled by its Rumo Logística transportation unit, had been damaged. Warehouse 10, where the fire took place, had 15,000 tonnes of sugar in storage, about a third of a cargo ship, and has 18,000 tonnes capacity.

A press representative said operations continued and Rumo expected to load a ship later on Monday.

Sugar futures jumped as much as 5.6 percent to an 11-day high early on Monday but later edged 0.4 percent lower with traders citing the limited damage and lack of urgent demand for Brazilian sugar.

Rumo has two terminals, 16 and 19, at Santos and a total of five shiploaders. Terminal 16 was not affected by the fire and remained operational, Cosan said.

Another of Cosan's 11 warehouses at Santos, Warehouse 5, appeared to have minor damage, according to a Reuters witness, while a conveyer belt for transferring sugar from Warehouse 10 looked unusable.

Damage was significantly less severe than that from an October fire in Santos at Copersucar SA. That blaze quickly sent futures prices sharply higher and caused the sugar trader, Brazil's largest, to issue force majeure to some clients.   Continuación...