Nuclear deal with Iran favors Brazilian sugar
The result of the nuclear deal between Iran and several world powers can have a positive impact on the Brazilian sugarcane industry.
Favored by the end of trade sanctions that put pressure on the Iranian economy and the release of more than US$ 100 billion frozen abroad, the country reverts to commercial activity with the West.
Free of trade sanctions, Iran has more flexibility to make business decisions. The commodity into the country is derived mainly from India, which is expected to lose large share of this market.
This opening represents an opportunity for the greatest player of sugar, Brazil.
The Iranian imports of the commodity coming from India are sold with value 15% higher than the papers traded on the New York Stock Exchange. Negotiations were made in Indian rupees, because Iran can’t trade in dollars, which burdened imports.
According to traders from Iran the tendency is that the sugar trade between the two countries decreases and open an opportunity for major exporters occupy this segment. Sales volume between them in 2015 already shows reduction.