REPORTS

• Brazilian govt debates ways to reduce fuel prices – Novacana - The President said that reducing the ICMS taxes on fuel and allowing the direct sale of ethanol to retailers would help lower domestic fuel prices. He is planning to talk to several governors about the direct ethanol sale which he estimates would reduce fuel prices by BRL 0.20/L (USD 0.05/L). Similarly, the ANP director suggested that the current system by which the ICMS tax rises as fuel prices increase was an issue and that a fixed ICMS may be a better alternative. Both proposals were facing resistance and would need to go through Congress. 

 

• Commodity trader ED&F Man Signals third straight annual Loss – Bloomberg - ED&F Man Holdings Ltd.’s unaudited results for 2019 signal a third consecutive annual loss as the commodities trader wrote down the value of some of its sugar factories. The results indicate the London-based company, best known for hauling sugar and coffee, lost $198 million in 2019, a spokeswoman for ED&F Man confirmed on Wednesday. The company, which has been trying to turn around its struggling sugar business, said it had one-time charges of $224 million in its fiscal year ended Sept. 30, including writedowns of certain assets that produce the sweetener. The impairments were related to its factories in Mexico, according to people familiar with the matter. The writedowns “are part of a streamlining process designed to put ED&F Man in a strong position for future growth,” the company said. “ED&F Man’s long-term approach is to focus on our core trading business and supply chain assets.”

 

• Saudi’s sugar tax to cause confusion more than anything else – Saudi Gazette - The 50% excise tax on Sugar Sweetened Beverages (SSBs) implemented in December 2019 will have a limited impact on the industry, according to a study by KPMG, but is expected to cause confusion in terms of product classification until a clearer list of the drinks affected is published