News

Two Brazilian sugar and ethanol producers yesterday agreed to merge to create what they hope will be the country's biggest biofuels company. The agreement, to create a group with total investments of R$7.3bn ($4bn) by 2012, follows a $12bn deal this month between Royal Dutch Shell and Cosan of Brazil.

It provides further evidence of the appeal of Brazil's ethanol market and of confidence that foreign markets for Brazilian ethanol will open up.

As the country prepares for a better sugarcane harvest next season, increasing possibility of more sugar production, industry and experts have demanded de- controlling the sector --one of the few sectors un- touched by liberalisation.

Corn jumped to a four-week high and soybeans rose for a fourth straight session after farmers curbed sales following a price slump earlier this year, tightening supplies for export and for producing animal feed and fuel.

Ukraine’s grain export in January-June, the second half on the 2009-10 marketing year, is likely to total 6 million metric tons, the Ukraine Agrarian Confederation said Friday.