Brazil's Cosan says to help "neighbor" Copersucar ship sugar

Reuters

SAO PAULO, Oct 24 (Reuters) - Brazilian sugar and ethanolproducer Cosan SA Indústria e Comercio plans to helpcompetitor Copersucar export sugar through a neighboringterminal while Copersucar rebuilds from a fire that damaged itsoperations at Santos port.

Cosan is developing a plan to take some of the burden offCopersucar, the world's largest sugar and ethanol trader, as itrebuilds five warehouses that were destroyed last week, saidRubens Ometto, chairman of Cosan's board.

"As neighbors of Copersucar we are making investments tohelp them export in a manner that will cause the least number ofproblems possible," he told journalists in Sao Paulo onThursday, without giving specifics.

Copersucar this week declared force majeure on sales tothird-party exporters with contracts to ship through its SantosPort terminal, including Bunge Ltd and Louis Dreyfus,pushing ICE sugar futures to one-year highs.

Market participants have suspected Copersucar would try toship some of this season's sugar through the neighboring Rumoterminal, controlled by Cosan, at Santos. It is also likely tosend more sugar farther south to Paranagua port.

Cosan controls the world's biggest sugarcane processor,Raizen SA, jointly with Royal Dutch Shell Plc.

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