Cepea, December 5, 2019 – In November, the average price for the crystal sugar traded in the spot market of São Paulo State remained at around 65 BRL per 50-kilo bag, which has been observed since the first fortnight of October. This scenario may be linked to supply, which was reduced by refineries, and to the low demand for prompt-delivery.
In November, a higher number of refineries from SP ended crushing the 2019/20 crop – these refineries account for around 88% of the sample consulted by Cepea. The CEPEA/ESALQ Index for crystal sugar (SP) averaged 65.65 BRL (15.82 USD) per 50-kilo bag last month, a slight 0.94% up compared to that from October (65.04 BRL/bag).
In the international market, demerara sugar quotes increased at the New York Stock Exchange (ICE Futures), influenced by new estimates for a world sugar deficit. According to the International Sugar Organization (ISO), the deficit may reach 6.115 million tons, due to the lower production in important sugar-producing countries, such as India and Thailand.
Still according to ISO, the exchange ratio between consumption and inventories in the 2018/19 crop is at 50.5%, the lowest since the global 2016/17 season. Still, these reasons are considered insufficient to push up international sugar prices to levels higher than 15 cents of dollar per pound.