Cepea, November 19, 2024 – White crystal sugar values continue firm in the spot market of São Paulo state. On November 18, the Index CEPEA/ESALQ Index closed at BRL 168.16 per 50-kilo bag, for an increase of 2.67% in relation to that on October 31.
The demand for Icumsa 150 sugar for prompt-delivery was high in mid-November. As for the supply, it was low, because of the high volume allocated to exports. This scenario sustained the upward trend for domestic prices, which continued to hit nominal records.
From November 11-15, Cepea calculations show that the weekly average of the CEPEA/ESALQ Index for white crystal sugar (Icumsa 130-180) closed at BRL 167.30 per 50-kilo bag, while the average of the March/25 contract at ICE Futures closed at 147.38 BRL per bag. Thus, sales in the spot market of SP remunerated 13.52% more than exports did. This figure considered weekly averages at USD 58.98 per ton of freight and charges, USD 61.53 per ton for quality premium and dollar at BRL 5.779.
Unica indicates that the Central-Southern area in Brazil processed 27.167 million tons of cane in the second fortnight of October/24, downing 21.62% compared to the same period in 2023. The sugar production dropped 24.3% in the same comparison, at 1.785 million tons.
Secex data indicate that Brazil exported 32.117 million tons of sugar between January and October 2024, moving up 34.65% compared to that in the same period last year.
(Cepea-Brazil)
Centro de Estudos Avançados em Economia Aplicada – CEPEA-Esalq/USP
