Trading in the Brazilian domestic sugar market (Sao Paulo state) is still more advantageous than exports. Between October 9 and 13, the domestic market remunerated 4 percent more than exports, even with the rises of the international prices, specially in the London International Financial Futures Exchange (Liffe), and the small decreases of the domestic values.
It can be explained by the strong futures decrease in the third week of September at the New York Board of Trade (Nybot) and at the Liffe, due to the forecasts of larger supply in relation to the demand and also as a result of the decreasing futures for petroleum.
In the domestic market prices keep almost unchanged. The CEPEA/ESALQ Index for crystal sugar averaged 17.45 dollars per bag of 50 kilos this Wednesday, October 18, up only 0.23 percent (in dollar) in relation to the last day of September.
Brazilian sugarcane harvest season is nearing the end in the Center-Southern region. According to Unica (Sao Paulo Sugar Cane Agroindustry Union), until the end of September, 80 percent of the total 2006/07 crop production was processed, totaling 292.2 million tons, volume 10.6 percent higher to the same period of the last season.
Sugar production, in the Center-Southern area, totaled 20.9 million tons until the end of September, volume almost 20 percent higher from the same period of last year.
According to Secex (Foreign Trade Secretariat), in September, Brazil exported 1.538 million tons, volume 7 percent lower to that of Sept/05 and 13.2 percent inferior to August.