BTG Pactual, a Brazilian investment bank, anticipates the merger of several minor companies in order to overcome the difficulties caused by last year’s poor harvest for sugar. These are Cosan (CZZ, CSAN3.BR), San-Martinho (SMTO3.BR) и Tereos Internacional (TERI3.BR).
Some experts say that the merge can help the companies make up for the slowdown in the domestic market of sugar. The companies are probably facing difficulties in satisfying the domestic demand for ethanol and supplying the global market of sugar. Despite the poor harvest gathered last year, Brazil remains one of the world’s major exporters of sugar.
According to the Department of Commodity Trading of , the stocks of Cosan, San-Martinho и Tereos Internacional are currently oversold, which means the price is about to start a rally attended by a wave purchases.
In the meantime, the March futures contracts keep staying in the 22.73-24.88 range.
