Due to the sugar prices decreases more expressive in the international market than in the domestic one, the advantage of Brazilian trades enlarged over exports in May, to 12 percent on the average. Trading in the domestic market has been remunerating more than exports since March this year.
In the domestic market, besides the inventories from the previous crop, some mills have started to offer the product from the new season in the spot market. On Friday, May 30th, the CEPEA/ESALQ Index for crystal sugar (Sao Paulo state) closed at 26.14 reals or 16.04 dollars per bag of 50 kilos, dropping 5.5 percent over April 30th.
Regarding the price parity calculated by Cepea, the anhydrous ethanol remunerated 5 percent more than the sugar on May average. For the hydrated, the sugar kept remunerating more than this type of ethanol, 7 percent. (Cepea - Brazil)