Firmer demand boosts crystal sugar prices rise in the Brazilian spot

Cepea, December 17, 2019 – The average price for the crystal sugar traded in the spot market of São Paulo State increased in the first fortnight of December – on Dec. 13, the CEPEA/ESALQ Index for crystal sugar (SP) closed at 69.69 BRL (16.97 USD) per 50-kilo bag, 6.3% up compared to that on Nov. 29. The boost came from the return of purchasers to the domestic market – these agents bought higher volumes in a low supply scenario. Firmer demand, in turn, may have been occasional and linked to stock building for the coming weeks.

 

As regards the refineries from SP, many plants have already ended production in the 2019/20 crop, limiting the volumes available for prompt-delivery.

 

Between December 2 and 13, the CEPEA/ESALQ Index for crystal sugar (SP) averaged 68.12 BRL per 50-kilo bag, 3.68% up compared to that between November 1 and 14.

 

On December 12, the CEPEA/ESALQ Index for crystal sugar (SP) closed slightly higher than 70 BRL per 50-kilo bag, a price level that has not been verified since mid-May, when the 2019/20 season started and the supply was still low. In the partial of December (up to Dec. 13), the total volume of sugar traded in the spot market has surpassed that observed in July, when negotiations reached the peak.

 

Secex data indicate that sugar exports totaled 1.95 million tons in November, for an increase of 1.11% compared to that in October (1.928 million tons). Major destinations were Nigeria (254 thousand tons of sugar), Bangladesh (223 thousand tons) and Algeria (217 thousand tons). The total revenue obtained with exports amounted 565 million dollars in the month.

 

(Cepea-Brazil)

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