Cepea, May 18, 2021 – In the first week of May, the second official month of the 2021/22 season, the average prices for crystal sugar increased in the spot market of São Paulo State (SP), recovering the advantage over export values. In the three previous weeks, international prices were higher than prices in the spot market of SP.
Between May 3 and 7, the weekly average of the CEPEA/ESALQ Index for crystal sugar was 113.89 BRL per 50-kilo bag, while the Jul/21 contract at ICE Futures was 111.33 BRL per bag. Thus, sales in the spot market of SP remunerated 2.3% more than exports did. This figure considered weekly averages at 42.09 USD per ton of freight and charges, 48.55 USD per ton for quality premium and dollar at 5.3448 BRL.
In the first fortnight of May, the CEPEA/ESALQ Index averaged 114.44 BRL/bag, 8.17% up from that in the first half of April and the highest, in nominal terms, in the series of Cepea.
Although sugarcane is currently being harvested in Brazil, supply is low in the spot market, since mills in SP are prioritizing deliveries of the product previously purchased, to both the domestic and the international markets. Besides, high sugar prices abroad helped to underpinned quotes in the spot market of SP. International prices were boosted by estimates for lower productivity in central-southern Brazil, due to the unfavorable weather. For the coming months, rainfall below the average is forecast for the sugarcane-producing regions in central-southern Brazil.