Summary of Key Takeaways from Brazilian Corporates Conference Call Industry Overview - **Investor Trip**: BofA's 12th Brazil investor trip highlighted a stark sectoral divide and a defensive corporate posture among Brazilian corporates, with a focus on deleveraging and liquidity preservation in a challenging environment [1][2][3] - **Corporate Bond Performance**: Brazilian corporate bonds (EBRZ index) have underperformed with a total return of +3.5% YTD compared to LatAm (+8.9%) and EM (+7.5%) [1] Core Themes - **Deleveraging Strategy**: Companies are prioritizing deleveraging due to increased leverage and high local interest rates (15%), leading to postponed investments and accelerated asset sales [3][4] - **Sectoral Divide**: Sectors like Oil & Gas services, protein, and logistics are performing well, while industrial sectors such as steel and petrochemicals face margin compression due to low-cost imports, particularly from China [4][11] Credit Events and Market Sentiment - **Contagion Fears**: Recent credit events at Ambipar and Braskem have heightened investor scrutiny on balance sheets, potentially leading to a broader repricing of risk [2][4] - **Investor Preferences**: There is a growing emphasis on transparent governance and conservative financial policies among investors [2] Sector-Specific Insights - **Pulp & Paper**: The sector is navigating a downturn in pulp prices, with Suzano taking a leadership role through capacity cuts and diversification into consumer tissue [10] - **Metals & Mining**: The steel market is under pressure from Chinese oversupply, impacting CSN and Gerdau, while Vale remains focused on shareholder returns [11] - **Banking**: A bifurcation in credit quality is evident, with Itaú managing risks effectively while Banco do Brasil faces challenges in its agribusiness portfolio [12][51] - **Oil & Gas**: Petrobras is balancing investments with shareholder returns amid volatile Brent prices, while companies like Acelen are experiencing operational momentum [13][26] - **Agribusiness**: Adecoagro is facing significant margin squeezes despite high production volumes, with a focus on strategic acquisitions [19][37] Financial Health and Projections - **Banco do Brasil**: NPLs in agribusiness have reached 3.5%, prompting increased provisions to R$56 billion, with government intervention expected to stabilize the situation [51][52] - **Braskem**: The company is in crisis management mode, facing a prolonged downturn and cash burn estimated at $1 billion for 2025 [55][57] - **Acelen**: The refinery reported a significant reduction in operating costs from over $12/bbl in 2022 to $7.8/bbl in 1H25, with a positive outlook for diesel prices [26][27][33] Strategic Initiatives - **Acelen Renewables**: Plans for a $3 billion refinery project to produce sustainable aviation fuel and hydrotreated vegetable oil are underway [36] - **Adecoagro's Acquisition**: The acquisition of a stake in Profertil is seen as strategically beneficial despite potential near-term credit pressures [39][40] Conclusion - The Brazilian corporate landscape is characterized by a defensive posture, aggressive deleveraging strategies, and a clear sectoral divide influenced by both domestic and global economic factors. Investors are increasingly cautious, focusing on governance and financial health as key determinants for future investments.

Who thinks that gassing up your car with corn ethanol is better for the environment than gasoline. Come on, show me your hands. Any ethanol supporters here.I mean, it's made from corn, so it should be better, right. Well, here's the catch. When you factor in the environmental cost of converting land to grow all that corn, ethanol can actually generate 25% more carbon emissions than gasoline.Turning more lands into cornfields has side effects. Like clearing forests, disrupting soils, and using tons of fertil ...

Key Takeaways Mission Produce outperforms Adecoagro, supported by vertical integration and global distribution strength.AVO's FY25 sales are projected to rise 12.1% y/y, with improved EPS estimates in 30 days.AGRO's 2025 sales and EPS are expected to decline, while 2026 forecasts indicate a rebound in both metrics.In the ever-evolving world of agribusiness, Mission Produce, Inc. (AVO) and Adecoagro S.A. (AGRO) stand out for their distinct market plays and growth trajectories. Mission Produce dominates the g ...

Corn prices are steady to fractionally higher in the nearbys on Thursday. Futures closed with gains across most contracts on Wednesday, with contracts 1 to 2 ¼ cents higher on the day. Preliminary open interest suggested modest net new buying, up 13,539 contracts. The CmdtyView national average Cash Corn price was up 2 ¾ cents at $3.80 1/2. The average close for December futures so far this month has been $4.20. EIA data from Wednesday morning showed a total of 1.071 million barrels per day of ethanol pro ...

The corn market closed with gains across most contracts on Wednesday, with contracts 1 to 2 ¼ cents higher on the day. The CmdtyView national average Cash Corn price was up 2 ¾ cents at $3.80 1/2. The average close for December futures so far this month has been $4.20. EIA data from this morning showed a total of 1.071 million barrels per day of ethanol production in the week ending on 10/3. That was a rebound of 76,000 bpd on the week. Stocks were still tightening, down 44,000 barrels to 22.72 million ba ...

Corn futures are heading higher at midday, with bulls trying to flex 1 to 2 cent gains so far. The CmdtyView national average Cash Corn price is up 2 ¼ cents at $3.79 1/4 at today’s close. The average close for December futures so far this month has been $4.20. The whole month average price is used to determine the harvest price for crop insurance. More News from Barchart EIA data from this morning showed a total of 1.071 million barrels per day of ethanol production in the week ending on 10/3. That was ...

California Governor Newsom Signs AB30 Approving 15% Ethanol Blend that Increases Ethanol Market by more than 600 million Gallons Per Year CUPERTINO, Calif., October 3, 2025 – PRISM MediaWire (Press Release Service – Press Release Distribution) – Aemetis, Inc. (NASDAQ: AMTX), a renewable natural gas and biofuels company, announced today that California Governor Gavin Newsom signed Assembly Bill 30 (AB30), which immediately allows 15% ethanol blending in gasoline and expands the potential California market f ...

CUPERTINO, Calif., Oct. 03, 2025 (GLOBE NEWSWIRE) -- Aemetis, Inc. (NASDAQ: AMTX), a renewable natural gas and biofuels company, announced today that California Governor Gavin Newsom signed Assembly Bill 30 (AB30), which immediately allows 15% ethanol blending in gasoline and expands the potential California market for ethanol by 50% by increasing from an E10 to E15 blend. According to a UC Berkeley/Naval Academy study, a 15% ethanol blend could decrease gasoline prices at the pump by $2.7 billion per year ...

As Balrampur Chini Mills Ltd, a 50-year-old sugar producer in Uttar Pradesh, builds its first bioplastic plant, the company’s fourth-generation promoter already has ideas on how to further diversify beyond its sugar and ethanol business. Avantika Saraogi, an executive director on the board of BCML, is betting on diversifying into biochemicals and other organic materials in the face of growing environmental concerns. Her plans have an unusual moat—the company’s direct connection to over 550,000 sugarcane far ...

Corn futures pulled off the early lows to end Wednesday with fractional to a penny gains. The CmdtyView national average Cash Corn price was up 1/2 cent at $3.73 3/4. Some late session buying came via spillover support from soybeans on a post by President Trump. The weekly EIA report from this morning showed a total of 995,000 barrels per day of ethanol production in the week that ended on September 26. That was a drop of 29,000 barrels per day from the week prior and taking the 3 weeks decline to 110,000 ...