The CEPEA/ESALQ Index for crystal sugar (Sao Paulo state) closed at 24.82 reals or 12.97 dollars per bag of 50 kilos on Friday, June 15th, the lowest nominal level (in Real) of the last three years - since June/04. Since the beginning of April, the Index dropped almost 29 percent. Only in May, the decrease reached 17.5 percent.
The National Company for Food Supply (Conab) forecasts the 2007/08 sugarcane crop production at 528 million tons, increase around 11 percent over the 2006/07 crop. The total area is of 6.62 million hectare, an enlargement of 7.4 percent over the previous season. Sugar production should reach 31.3 million tons, increase of 3.6 percent in relation to the previous crop; the ethanol one should total 20.01 billion liters, volume 14.54 percent superior.
According to the Unica (Sao Paulo Sugar Cane Agroindustry Union), around 274 mills of the Center-Southern region started to harvest the 2007/08 crop.