Shell's sweet trade with Cosan for Brazilian ethanol and sugar

Shell and Cosan's New Venture

When a race starts, it’s really something to watch.

Within a few days two announcements about Brazilian sugar lit up stock traders’ screens. First, Bunge (NYSE:BG) announced it was selling fertilizer mines to Vale (NYSE:VALE) and would invest part of the proceeds back into Brazilian sugar. Then Cosan (NYSE:CZZ) disclosed it was in talks with Royal Dutch Shell (NYSE:RDS/A) about a large sugar and ethanol joint venture valued at $12 billion. While each deal has its own logic and timeline, it’s clear that sugar prices are headed for another high in 2010 and that serious money is going for growth in Latin America.

Cosan is one of the favorite stocks in the LSI Growth portfolio. Here's the latest portfolio.

Stocks mentioned:
Vivo Participacoes(NYSE:VIV), Vale (NYSE:VALE), Ambev (NYSE:ABV),Cosan (NYSE:CZZ) and others.