05 June 2007 18:10 [Source: ICIS news]
By William Lemos
"It is only a start, but it is a good start," Cosan vice-president Pedro Mizutani told ICIS news on the sidelines of an industry event in Sao Paulo.
Mizutani said contract liquidity would likely increase once international participants stepped into the market.
However, a large fuel distributor said buyers in Brazil remained sceptical about the contract.
"The only thing that has changed so far is the currency denomination," the distributor said, referring to the old contract in Brazilian reais, which is still traded but does not have much liquidity.
One buyer said the problem with the new contract was that neither buyers nor producers were willing to take the first step and delve into the market.Once that happens, maybe things would change, and the US dollar contract would gain liquidity, the source said.
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