Demand weakens and prices drop in the Brazilian spot market

Cepea, September 17 2019 – The CEPEA/ESALQ Index for crystal sugar (São Paulo State) dropped in the Brazilian market in the first fortnight of September. Agents from the refineries from SP State were more willing to lower asking prices, since demand has been lower than that in late August. Purchasers, in turn, do not have urgent needs, due to recent acquisitions. Besides, these agents expect prices to decrease more, based on the typical production peak at this time of the year.

 

Thus, between September 2 and 13, the CEPEA/ESALQ Index for crystal sugar decreased 2.07%, closing at 59.99 BRL (14.66 USD) per 50-kilo bag on Sept. 13

 

According to Unica (Brazilian Sugarcane Industry Association), in the 2019/20 season (April 1 to September 1), the production mix at the refineries from SP is at 42.08% for sugar. In the remaining states from central-southern Brazil, the production mix for sugar is still lower, at only 26.37%. Still according to Unica, in the current season, the refineries from SP produced 12.409 million tons of sugar, 5.6% down compared to the volume produced in the same period last season (2018/19).

 

(Cepea-Brazil)

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