Cepea, November 19, 2019 – The trading pace for crystal sugar was calm in the spot market of São Paulo State in the first half of November. Demand did not increase much and supply was low, due to the end of the 2019/20 crop – the refineries from SP were limiting crystal sugar supply for prompt delivery, underpinning quotes.
According to Cepea surveys, nearly 54% of the refineries from SP may have ended sugarcane crushing (2019/20 crop) in the first fortnight of November. Until the end of the month, around 85% of the refineries should have already ended production.
Thus, the CEPEA/ESALQ Index for crystal sugar (São Paulo State) rose 0.7% between Oct. 31 and Nov. 14, closing at 65.67 BRL/bag (15.76 USD/bag) on Nov. 14.
In the international market, demerara sugar quotes rose at the New York Stock Exchange (ICE Futures), reflecting forecasts for a world sugar deficit – between 6 and 7 million tons.
As regards sugar exports, according to data from Secex, Brazil shipped 1.928 million tons of sugar in October, 12.17% more than that from September (1.719 million tons) and the highest monthly volume exported in the year. India was the number one destination for the Brazilian sugar in October, having imported 283 thousand tons. Second in the rank comes Algeria (215 thousand tons), followed by Iraq (213 thousand tons), Bangladesh (179 thousand tons) and Nigeria (171 thousand tons). Despite the increase, this year, Brazilian sugar exports have totaled 15.007 million tons, 16.16% less than that in the same period last year (17.901 million tons).