Hedges 80% of sugar production and foresees an early start to the harvest in Brazil

By Marcelo Teixeira NEW YORK (Reuters) - Before the sharp correction in the price of sugar in New York, French company Tereos hedged last year around 80% of the sweetener it will produce in Brazil in the new harvest that begins this month, the director said. president of the group in the country. "We took advantage of high prices last year," CEO Pierre Santoul told reporters on an earnings call when asked about the company's hedging strategy, adding that he is unaware of whether other companies in the sector have done the same. Raw sugar futures in New York lost almost 30% of their value between the end of November and the end of December, going from 27 cents per pound to 20 cents per pound. The funds liquidated a large part of their long positions as Brazil finished a record harvest and signs of improvement emerged in harvests in India and Thailand. Sugar prices were trading at around 22.60 cents per pound early Monday afternoon. Santoul is optimistic about prices going forward. ...