Cepea, October 17th, 2023 – The prices paid for the 50-kg bag of white Crystal sugar continued to rise in the spot market of São Paulo State in the first week of October. On October 5th, the CEPEA/ESALQ Index for crystal sugar (Icumsa 130-180) hit BRL 159.32 (USD 30.79) per 50-kg bag, the highest nominal level in the series of Cepea, which began in 2003.
The boost to prices in Brazil came from both the high levels of sugar values abroad and the dollar appreciation against the Real, which keeps exports more advantageous to Brazilian sellers than sales in the domestic market. Between October 2-6, the American currency averaged BRL 5.1414, 2.5% higher than that in the previous week.
Also, the volume of white crystal sugar traded in the spot of SP decreased slightly in the first week of October, due to the unwillingness of some purchasers to pay the prices asked by sellers. Still, agents from mills did not lower asks.
Thus, from October 6th onwards, the sugar Index resumed fading. After the valuations in the first week of the month, purchasers became unwilling to pay the prices asked by sellers and left the market. Besides, the second week of October was “shorter” in Brazil because of the holiday on Thursday, 12 (Day of Our Lady of Aparecida), which also influenced liquidity. As for sugar mills, those with higher sales needs lowered asks, even for small amounts.
Between September 29th and October 13th, the CEPEA/ESALQ Index for sugar (Icumsa 130-180) dropped 0.74%, to BRL 154.58 (USD 30.36) per 50-kg bag on October 13th.
BRAZILIAN PRODUCTION – According to Unica (Brazilian Sugarcane Industry Association), in the second fortnight of September (2023/24 season), Brazil produced 3.36 million tons of sugar, 98.02% more than that in the same period last season.