After decreasing since the crop beginning - from April to June, the CEPEA/ESALQ Index for crystal sugar (Sao Paulo state) dropped 30.64 percent -, Brazilian sugar prices moved up in the first fortnight of July. On Monday, July 16th, the Index averaged 24.19 reals or 12.93 dollars per bag of 50 kilos, up 0.96 percent in Real and 4.11 percent in dollar over June 29th.
Trades moved at a slow pace. Most part of mills kept focused on exports, which are still remunerating more than the domestic trades. Buyers, in turn, traded few volumes, waiting for a better market definition.
The sugar is still remunerating 7 percent more than the anhydrous ethanol and 14 percent more than the hydrated. Regarding price parity, exports remunerated 3 percent more than the domestic trades during the first fortnight of July.
According to the Unica (Sao Paulo Sugar Cane Agroindustry Union), until July 1st, the sugarcane volume processed in the Center-Southern region totaled 131.3 million tons, 4.4 percent higher than in the previous crop. The sugar production totaled 7.34 million tons (reduction of 8.7 percent) and the ethanol's one, 5.56 billion liters (increase 11.2 percent).
Regarding exports, in June, the volume exported totaled 1.7 million tons, 6 percent inferior to that from Jun/06, according to the Foreign Trade Secretariat (Secex).