Due to the raise in international sugar prices and because of the stability in Brazil, exports remunerated as much as domestic trades (Sao Paulo state) at the end of September. Trade in the domestic market was more advantageous than export in the last three months.
On Tuesday, September 30th, the CEPEA/ESALQ Index for crystal sugar (Sao Paulo state) closed at 31.10 reals or 16.33 dollars per bag of 50 kilos, an increase of 3.9 percent in Real compared to August 29th. Few trades were settled, influenced by the uncertainty in financial markets. Some buyers and sellers retreated, waiting for a clear definition of the exchange rate and of commodities prices. In September, the dollar valuated 16.6 percent, closing at 1.904 real on Sept 30th.
According to the latest Unica (Sao Paulo Sugar Cane Agroindustry Union) report for 2008/09 crop, until Sept 16th, 316.4 million tons of sugarcane were processed in the Center-Southern region of Brazil, 8.43 percent more than in the same period of 2007/08 crop. The sugar production totaled 16.9 million tons from April to September, decreasing 4.07 percent over the same period 2007. On the other, hand, the ethanol production reached 15.1 billion liter, rising 15.13 percent.
The Northeastern region, which produces around 15 percent of the Brazilian sugar and ethanol production, started harvest activities in September. (Cepea - Brazil)