Next year's hedging was 25 percent for projections of sugar on the futures market at Cosan while the past few years' hedging was 30 percent. Financial Director Marcelo Martins said minimal production in Brazil helps prospects look good. The South American nation produces more than half of the world's free trade sugar.
"Brazil won't be able to supply the market in the way people are expecting," Martins told an investors' meeting, according to Reuters. "Even with output rising in other countries such as Russia, Thailand, India, we don't see a sugar excess next year. Brazil's share is so big in the market."
At 2 p.m. on Wednesday, sugar futures fell 4.67 percent, a 1.13 cent slip to 23.05 cents per pound.
Bloomberg reports Wednesday's poor performance marks the biggest fall in 11 weeks and it attributes the losses to the return of pessimism for Europe's ability to control the sovereign debt scourge.
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