STXNEWS LATAM-Strong results seen for Brazil commodity firms-Itau

Reuters

Itaú BBA, the investment banking unit of Brazilian banking giantItaú Unibanco Holding SA, expects most of thecommodities companies it covers to report a "strong set ofthird-quarter results," supported by a recent decline in thecurrency that made their exports more competitive in globalmarkets. In a Wednesday note, analysts led by Paula Kovarskysaid a weaker Brazilian real created a protectionmechanism for its products in domestic markets, where revenueand market share for local companies grew by making imports moreexpensive. The analysts expect domestic prices rose as importslost ground, the note said.

Among the companies likely to post robust earnings: UsinasSiderúrgicas de Minas Gerais SA, a steelmaker known as Usiminas ; mining giant Vale SA ; and paperand pulp producers Suzano Papel e Celulose SA andFibria SA.

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