Market fears polarization after annulment of Lula’s convictions

The annulment of the convictions of former President Lula within the scope of Operation Car Wash, putting him back in the political game, has soured, once and for all, the mood in the market. On an already negative day for Brazilian assets, the decision by Justice Edson Fachin, of the Federal Supreme Court (STF), took investors by surprise and aggravated the search for protection against the risk of a new scenario of political polarization and additional doses of populist measures by the Bolsonaro administration. Benchmark stock index Ibovespa fell 3.98%.

Source: Valor International

With economic recovery, Santos Brasil profit rises 38%

Santos Brasil posted a 38% rise in net profit in the fourth quarter of 2020, to R$14.3 million ($2.4 mm), compared to the same period in 2019, a document sent to the market shows. Despite this, the company closed the year with a loss of R$13.8 million ($2.4 mm) against the profit of R$15.4 million ($2.6 mm) recorded in 2019. Port activity in Brazil and the world remained active in 2020, but suffered from supply and demand shocks.

Source: Money Times

Power generation from waste increases 7.7% in 2020

The production of electricity from urban waste grew by 7.7%, CCEE reported on Monday (08/02). Last year, biogas thermal plants produced about 110.2 average MW per year, surpassing the 102.3 average MW mark in 2019. The CCEE points out that, although it has a small scale in the Brazilian electricity matrix, the expectation is that the segment may attract new investments. In the last five years, this sector increased its energy production by 162%.

Source: Energia Hoje

Amaggi to expand capacity by 34% with acquisition

Amaggi, one of the largest grain and fiber producers in the country with revenues of nearly $5 billion in 2019, has agreed to buy the operations of Argentina’s El Tejar in Brazil. As a result, the agriculture giant will take over 62,000 hectares and increase production capacity by 34%. With the deal, Amaggi will seek to expand its share in the global certified soybean market, focusing on the sustainability of its crops.

Source: Valor International

BRF plans $119 mm for innovation

BRF, one of the largest food companies in the world, plans to invest another R$ 700 million ($119 mm) in digital transformation by 2025. The company concluded this year the balance sheet of its innovation actions, which, since 2017, have received investments of R$ 300 million ($51 mm). The Digital Lab is also a hub for training BRF employees in work methodologies focused on innovation and process agility, such as agile business and design thinking.

Source: Portal do Agronegocio