Cosan eyes ethanol, sugar uptick

Higher autumn rainfall his lifted the short-term outlook of Brazil's sugar and ethanol sector, according to local conglomerate Cosan.

The volume of cane processed by Cosan's partly-owned subsidiary Raízen could reach 60Mt this harvest, up from 57Mt in 2014-15, the firm's CEO Nelson Gomes said in a conference call.

"At this moment, we're indicating a crushing volume closer to the guidance's top rather than the middle," Gomes said.

Cosan and Royal Dutch Shell each hold a 50% equity interest in Raízen.

Cosan, which operates 24 sugar and ethanol mills, reported a first-quarter net loss of 43.7mn reais (US$13mn) compared to a 256.1mn-real profit in the same period of last year.

Earnings were affected by drought and costs associated with a takeover of rail operator América Latina Logística, the company said.

Brazil's sugarcane harvest period spans April to March.