Cepea, May 16, 2018 – Although the production mix indicates that the 2018/19 season will produce more ethanol than sugar, dry weather has accelerated sugarcane harvesting in São Paulo (SP) State, increasing sugar supply. This scenario, which is also linked to low demand from purchasers, pressed down crystal sugar quotes in the Brazilian market in the first fortnight of May. Between April 30 and May 15, the CEPEA/ESALQ Index for crystal sugar (São Paulo) dropped 3.56%, closing at 53.15 BRL (14.51 USD) per 50-kilo bag on May 15.
According to Unica (Brazilian Sugarcane Industry Association), in April, the mills from SP State crushed 36.841 million tons of sugarcane, 44.71% more than in the same period last season. Sugar production totaled 1.577 million tons, 22.37% larger than in April/17. Of the total sugarcane crushed, 39.31% were allocated to sugar production, and 60.69%, to ethanol production.
Demerara sugar prices at the New York Stock Exchange (ICE Futures), which have been decreasing since March/18, influenced price drops in Brazil too. In general, international quotes have been dropping, due to high supply in several countries, and rises have been occasional.