Cepea, June 2, 2020 – Crystal sugar prices oscillated in the Brazilian market in May, but ended the month on the rise. On May 28, quotes returned to around 76 BRL per 50-kilo bag, when some refineries reduced the supply of higher quality sugar for prompt-delivery in the market. Firm exports and rains in some areas to be harvested (which interrupted production for some time) lowered supply in Brazil. There were only a few deals involving larger sugar volumes.
Between April 30 and May 29, the CEPEA/ESALQ Index for crystal sugar (Icumsa 130-180 – São Paulo) rose by 1.1%, closing at 76.79 BRL (14.38 USD) per bag on May 29. However, the average in May, at 74.79 BRL per 50-kilo bag, was 3.3% lower than that in April.
With prices rising in Brazil, Cepea calculations show that the gap between prices in the Brazilian market and for exports narrowed at the end of the month, with that for exports still higher.
According to 2020/21 crop survey from Unica (Brazilian Sugarcane Industry Association), between April and the first fortnight of May, the refineries from São Paulo State produced 3.827 million tons of sugar, 87.47% more than that in the same period last crop.
In the Brazilian market, both trading and production continued hampered by the effects of the coronavirus pandemic. This scenario may keep the demand for ethanol low, favoring sugar production. Besides, Real is weak against the dollar, which favors Brazilian sugar exports.
CROPS – In São Paulo State, the dry weather favored sugarcane harvesting and crushing at processing plants in May. In general, activities advanced with no interruptions.