Index rises to the highest nominal level in the last 31 months

Cepea, February 4, 2020 – Firm demand and the low supply of crystal sugar are pushing up quotes for this commodity in the spot market of São Paulo State during the 2019/20 off-season period. With the recent valuations, the CEPEA/ESALQ Index for crystal sugar (Icumsa 130-180) surpassed 76 BRL per 50-kilo bag on January 24, nominal level that had not been observed since early June 2017. However, the volumes traded have decreased, since mills have reduced supply, primarily for the Icumsa 150 crystal sugar.

 

In January, specifically, crystal sugar prices increased in the spot market of São Paulo State. The CEPEA/ESALQ Index for crystal sugar (Icumsa 130-180 – São Paulo) averaged 74.33 BRL (17.91 USD) per 50-kilo bag, 5.9% up compared to that in December/19 (70.18 BRL/bag) and 0.36% higher than the average in Jan/19 (74.06 BRL/bag), in real terms, deflated by the IGP-DI from December/19.

 

In the international market, estimates for a lower world supply in the 2019/20 season, due to a production decrease in India and weather issues during the current Thai crop, are pushing up demerara sugar quotes to levels observed two years ago. However, on the average of the crop, future contracts decreased slightly, due to the scenario in the oil market – in late January, oil barrel prices returned to 60.00 USD last week.

 

(Cepea-Brazil)

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