Sadia Loses BRL760m on FX Hedge

Sadia, the Brazilian poultry processor, has lost BRL760m through an FX hedge designed to protect parts of its business from fluctuation in BRL-USD. In a statement posted on the CVM website, Sadia says it unwound the position, which resulted in the recognition of the loss. The company says rapid depreciation of the BRL, which was unexpected, was the main reason for the misguided hedge. The BRL has weakened 18% versus the dollar since the beginning of August.