Cepea, June 17, 2020 – The refineries in São Paulo (SP) have been producing more sugar this season (2020/21) than they did in the previous (2019/20). According to Unica (Brazilian Sugarcane Industry Association), in the first two months of the current crop (April and May 2020), the refineries from SP produced 5.590 million tons of sugar, 66.53% more than that in the same period last year (3.357 million tons). Despite this scenario, the average prices for crystal sugar in the spot market of SP have been higher this season than in the same period last crop.
In the first fortnight of June, for instance, sugar prices averaged 76.37 BRL per 50-kilo bag, against 66.38 BRL/bag in June 2019 – values were deflated by the IGP-DI from May/20. The higher volume allocated to exports is helping to underpin prices in Brazil this year. Compared to the average in the first half of May, the average Index between June 1 and 15 is 2.3% higher.
Firm demand for the Brazilian sugar also influenced price rises in the international market. By the end of the first half of June, more than 70 ships were waiting at Santos port (SP) to take more than 3 million tons of sugar to refineries in other countries. In the same period last year, only 15 ships were waiting to be loaded with 700 thousand tons, according to the marine agency Williams.
According to Secex, in May, Brazil exported more than 2.7 million tons of sugar, 76.48% more than that shipped in April (1.53 million tons) and 78.99% up compared to that exported in May/2019 (1.508 million).