Brazilian sugar prices moved down in the accumulated of October. Not even the interruption of the process activities at the end of the month, due to the rainfalls, supported the values. The CEPEA/ESALQ Index for crystal sugar (Sao Paulo state) averaged 23.46 reals or 13.51 dollars per bag of 50 kilos on Wednesday, Oct 31st, dropping 4.32 percent in Real over Sept 28th. The pressure came from the combination of higher supply and weak demand. Some mills are with high inventories. Other ones start turning the attentions to the contracts settled for the off-season period. Buyers, in turn, have remained purchasing small volumes.
Even with the recent decreases, the Brazilian sugar trades kept remunerating more than exports. In average, the advantage of domestic trades was of 8 percent over exports in October.
According to the Sao Paulo Sugar Cane Agroindustry Union (Unica), almost 90 percent of the 2007/08 crop was already harvested. From April to September, the ethanol production totaled 14.41 billion liters (increase of 16.1 percent) and the sugar, 19.87 million tons (reduction of 4.81 percent). Only in Sept, it was processed 62.52 million tons of sugarcane, enlarging 22.5 percent over the same period 2006. The Unica forecasts a production of 415 million tons of sugarcane. The drought in the Center-Southern region should reduce the productivity in the next season (2008/09).