Crop increases 10 percent and prices, 43 percent

Even with the higher crop production, in this season (April 1st and December 13th), Brazilian sugar prices are almost 43 percent superior over the same period of 2005 - in nominal terms.

According to Conab (National Company for Food Supply), the sugarcane crop (2006/07) should reach 475.7 million tons, volume 10.3 percent higher than the previous crop. Planting area is forecast at 6.188 million hectares.

On December 13th, the CEPEA/ESALQ Index for crystal sugar averaged 17.24 dollars per bag of 50 kilos, up 1.3 percent over the previous Wednesday.

In the international market, prices moved down, pressured by record crops in the main global producing countries, as Brazil, India and Thailand. Even with international decreases and the stability in Brazil, exports kept remunerating more than the domestic market. Last week, the advantage was of 1 percent, against 4 percent in the previous week.


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