Since the beginning of December, Brazilian sugar prices have been registering consecutive increases, confirming the typical off-season scenario in the Center-Southern region. Moreover, valuations in the international market, due to the perspective of supply deficit, reinforced the upward trend in Brazil. The CEPEA/ESALQ Index (Sao Paulo state) closed at 45.14 reals or 19.80 dollars per bag of 50 kilos on Feb 16th, up 9 percent in Real from Jan 30th. In the last two months, the increase reached 43 percent in Real.
Due to the strong valuations in Brazilian sugar prices, domestic trades (Sao Paulo state) returned to remunerate more than exports - the advantage was of 2 percent between Feb 9th and 13th, according to Cepea.
Unica (Sugar Cane Agroindustry Association) data show that, until January 15th, 499.6 million tons of sugarcane were processed in the Center-Southern region, an increase of 15.9 percent compared to the same period of 2007/08 crop. The sugar production totaled 26.75 million tons from April (crop beginning) to Jan 15th, 2.1 percent higher than that verified in 2007. For ethanol, the production reached 24.8 billion liters, up 22.6 percent. (Cepea - Brazil)