Latest news with #Tereos
Business Recorder
7 days ago
- Business
- Business Recorder
Cocoa falls as U.S. tariffs, jobs data ignite growth fears
LONDON: Cocoa futures on ICE slid on Monday as speculators trimmed their net long position amid worries over U.S. trade tariffs and Friday's weak U.S. jobs report. The Trump administration last week slapped a slew of tariffs on dozens of trading partners, which could raise domestic U.S. prices and hurt demand for goods in the world's top economy. Most of the tariffs are set to come into effect on Friday. Cocoa London cocoa futures fell 1.6% to 5,298 pounds a metric ton, having hit a one-week low of 5,230. Shares Barry Callebaut, the world's top cocoa processor and bulk chocolate maker, slid 4%, with analysts noting the firm is exposed to tariffs as it imports cocoa into the U.S. from countries like Ivory Coast, Ghana and Brazil. The U.S. Commerce Secretary said last week commodities not grown in the U.S. could be exempt from tariffs if deals with producing countries are reached, but there are many deals yet to be closed. In the absence of trade deals, tariffs of 15% will apply to top producer Ivory Coast, 10% will apply to No. 2 and No. 3 producers Ghana and Ecuador, while 50% will apply to Brazil. New York futures fell 1.4% to $7,452 a ton, having hit a two-week low of $7,347. Coffee, cocoa slip as investors hold out for US tariff relief Coffee Arabica coffee futures rose 1.2% to $2.8075 per lb, recovering after hitting their lowest since mid-November on Friday. Dealers noted comments from Brazilian President Luiz Inacio Lula da Silva that he is still open to U.S. trade talks, and speculated as to whether the weak U.S. jobs report will pressure the U.S. into pulling back some of its tariff threats. The U.S. is the world's top coffee consumer and it imports about a third of its coffee from top producer Brazil. Coffee, like cocoa, is a tropical commodity almost entirely unsuitable for growing in the U.S. Robusta coffee rose 2.6% to $3,343 a ton, having closed down 2.2% on Friday. Sugar Raw sugar ??rose 0.8% to 16.31 cents per lb, having settled down 1% on Friday. French sugar maker Tereos, one of the world's largest sugar makers, said lower production and sales volumes in Europe could lead to a price recovery later this year. White sugar rose 0.9% to $469.10 a ton, having settled down 0.6% on Friday. Pakistan has issued a new international tender to purchase 100,000 metric tons of white refined sugar, European traders said.
Reuters
7 days ago
- Business
- Reuters
Tereos profit drops as dollar and low sugar prices weigh
PARIS, Aug 4 (Reuters) - France's Tereos on Monday reported a sharp drop in quarterly profit, saying low sugar prices continued to pressure its core business while a weaker dollar exacerbated import competition for its ethanol activity. Tereos, one of the world's largest sugar producers, had warned previously that a slide in prices that squeezed earnings in its 2024/25 financial year to March 31 would remain a drag in 2025/26. Reporting results for its April-June first quarter, the farmer-owned cooperative said adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) were 56 million euros ($64.82 million), down 79% from the year-earlier period. The company posted a net loss of 65 million euros compared with a year-earlier net profit of 108 million euros. "Lower contracted sales prices in Europe - since Q3 24/25 for sugar and since Q4 24/25 for starch & sweeteners - had an adverse impact on the Group's first quarter," Tereos said in a statement, adding this was compounded by lower yields in Brazil at the start of the harvest. The group maintained its guidance that its net debt versus EBITDA ratio would temporarily peak at around 5.0 during 2025/26, and reiterated that it sees lower anticipated sugar output in Europe in the coming season helping prices gradually recover. It also said its first quarter is typically its weakest period. However, a decline in the dollar linked to the wider geopolitical context had also weighed on the group by pushing down prices for sugar exports and ethanol biofuel, it said. The weaker dollar reinforced the competitiveness of imports of U.S. corn-based ethanol, flows of which into Europe had already been running at record levels, Tereos added. ($1 = 0.8639 euros)
Reuters
03-07-2025
- Business
- Reuters
French sugar company Tereos seeks to expand power business in Brazil
SAO PAULO, July 3 (Reuters) - French sugar maker Tereos plans to expand the client base for its power contract sales in Brazil by tenfold within two years, aiming for over 1,000 corporate customers, an executive told Reuters. Samuel Custodio, head of power commercialisation for Tereos in Brazil, said the growth will be driven by cross-selling to the company's existing sugar and ethanol clients as well as potentially to their suppliers and partners and through acquisitions. Tereos, the second-biggest sugar producer in Brazil, produces power from sugarcane biomass in some of its Brazilian plants. The power business provides Tereos with a predictable revenue stream even though it represents a small portion of the company's total revenue in Brazil, Custodio said in an interview on Wednesday. The group used to sell the power mostly through the Brazilian regulated power system, which is basically run by concessions. But as these contracts expired, the company has shifted its focus to the non-regulated power market, where corporate clients can choose their energy suppliers directly. Tereos generates approximately 1,500 gigawatt-hours of electricity annually at six plants in Brazil's Sao Paulo state. This output covers its own operational needs, allowing the company to sell the surplus.
Reuters
23-04-2025
- Business
- Reuters
Tereos sees EU sugar beet area falling by 9% next season
GENEVA, April 23 (Reuters) - French group Tereos, one of the world's largest sugar makers, estimated on Wednesday a 9% decline in Europe's sugar beet planting acreage next season as slumping prices in the bloc take their toll. Thanks to surging sugar exports from Ukraine, high output and falling consumption, European Union sugar prices dropped in February to 541 euros ($614.04) per metric ton, down 35% from a year ago and the lowest since September 2022, European Commission data show. At S&P Global's sugar conference in Geneva, Tereos' Commercial Director David Souriau said the projected acreage decline is "major" for the sugar sector. Other market participants projected more modest falls. Nearly half of those polled at the conference said they see the EU sugar beet acreage falling by 5-8% in the upcoming 2025/26 season, which runs from October to September. The EU is the world's third largest sugar producer so a reduced acreage likely means lower output, which could help stem the decline in global sugar prices that are near 2-1/2 year lows. Souriau said he is also concerned about recent mill closures in France, the Czech Republic and Austria. The closures tighten the market and give prices of the sweetener a chance to recover, but they could also lead to price volatility, which is difficult for the industry to manage. "Capacity once closed can't be rebuilt instantly. These events pose questions about the risk of volatility and for me, that's a key aspect (of the market) for this year and for years to come," he said. ($1 = 0.8811 euros)
