Cepea, November 7, 2023 – The prices for white crystal sugar decreased from the level of BRL 159.00 per 50-kilo bag (which was hit on October 20) and resumed operating from BRL 156 to BRL 157/bag. The CEPEA/ESALQ Index for crystal sugar (Icumsa 130-180) closed at BRL 157.19 per 50-kg bag on October 31, for an increase of 0.93% in the accumulated of the month.
Purchasers were unwilling to trade at higher prices in late October, despite the limited supply of high-quality sugar. In general, liquidity was still stable in the period.
Between Oct. 23 and 27, Cepea calculations show that the weekly average of the CEPEA/ESALQ Index for white crystal sugar (Icumsa 130-180) closed at BRL 157.31 per 50-kilo bag, while the average of the March/24 contract at ICE Futures closed at 171.01 BRL per bag. As a result, exports remunerated 8.71% more than sales in the spot market of SP did. This figure considered weekly averages at USD 70.70 per ton of freight and charges, USD 102.13 per ton for quality premium and dollar at BRL 5.0052.
In the international market, demerara sugar prices increased at ICE Futures at the end of October. The lack of rains has been affecting the productivity in crops in India, Indonesia and Thailand. In Brazil, on the other hand, the sugar production in 2023/24 may hit a record. However, the country faces logistical problems to export the product.
Unica reports that the Central-Southern region in Brazil produced 34.86 million tons of sugar in the accumulated of the current season (from April/23 to October 16), 23.65% more compared to the same period last crop.