Today with us, we have Mr. Mariano Bosch, CEO; Mr. Charlie Boero Hughes, CFO; and Mr. Juan Ignacio Galleano Investor Relations Manager. Indeed, we diverted 54% of the TRS to sugar production compared with 25% during the second quarter of 2019.
The Food and Agriculture Organization (FAO) food price index, which measures monthly changes for a basket of cereals, oilseeds, dairy products, meat and sugar, averaged 172.7 points in October, up 1.7% on the previous month and 6.0% year-on-year. FAO also predicted that cereal production would be 2.704 billion tonnes in 2019, slightly lower than its last forecast. The FAO sugar price index jumped 5.8% from September levels, largely because of expectations of lower supplies in the year ahead following forecasts of large reductions in sugar output in India and Thailand.
BP Plc <BP.L> is still looking to close its deal with Bunge Ltd <BG.N> to merge sugar and ethanol assets in Brazil in 2019, so the companies can go on to plan their operations together for the new cane season that starts in early 2020. BP's chief executive for biofuels, Mario Lindenhayn, told reporters on the sidelines of Datagro's sugar conference in Sao Paulo the oil major was just waiting for the green light of antitrust bodies in three countries, including China, to close the deal. "We already had the approval from Brazil and the European Union, and we are expecting remaining approvals still this year, that is the objective," Lindenhayn said.