Even with the start of the 2007/08 crop harvest activities, Brazilian sugar market keeps stable. That is because the sugarcane production has been destined to ethanol and VHP sugar (export type) production. The crystal sugar process should moves on from the end of April on.
Between April 9 and 16, however, prices dropped a little in Real, but not pressured by the product from the new crop. Some mills with the product from the previous season returned to trade at lower values. The CEPEA/ESALQ Index for crystal sugar (Sao Paulo state) averaged 34.26 reals or 16.82 dollars per bag of 50 kilos on April 16th, decreasing only 1.1 percent in Real and keeping stable in dollar over March 30th. In general terms, buyers have been waiting for the sugar from the new crop (2007/08).
According to the Unica (Sao Paulo Sugar Cane Agroindustry Union), 19 mills of the Sao Paulo state have started to harvest. In the Center-Southerner region, 60 mills have already retaken the activity.
Price parity calculated by Cepea shows that the domestic market kept remunerating more than exports during this first fortnight of April.