The Brazilian sugarcane 2006/07 harvest is nearing the end. According to Unica (Sao Paulo Sugar Cane Agroindustry Union), 85 percent of the total crop production had already been processed in the Center-Southern region, totaling 311.66 percent, volume 8.5 percent higher than the same period of the last season.
In the domestic market, prices have remained stable for almost two months. The CEPEA/ESALQ Index for crystal sugar averaged 17.32 dollars per bag of 50 kilos on October 31, down only 0.5 percent in the accumulated of the month.
The increasing sugar prices have reverted the domestic market advantage, which was lasting one month. Price parity calculated by Cepea showed that the domestic market remunerated 1 percent less than the exports last week.