Brazilian mills focused on exports

The sugar cane processing moves on in Brazil, but the domestic prices are still firm around 22.60 dollars per bag of 50 kilos, different from the market behavior in the last years. Support comes from the increasing international prices, given fundaments like: larger ethanol processing, in restriction to sugar; lower market share for Europe and the deficit supply in the world.

In Brazil, since the beginning of the new crop season, in March, processors are focused on exports. In May, Brazil exported 569 thousand tones of sugar, a volume 51.7 percent lower from May 2005, according to Secex (Foreign Trade Secretariat). That was related to operational problems during the shipments in May this year.

Normally, Brazilian processors increase the white sugar processing from June on. This year, due to exchange rate and future prices oscillations, buyers and sellers have been careful about the decisions to take. In the beginning of this month, exports lost the advantage to the domestic trades.

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