Brazilian sugar prices increased significantly in January/09. Besides limited supply in India, the off-season period in the Center-Southern region of Brazil reinforced the upward trend. On Friday, January 30th, the CEPEA/ESALQ Index (Sao Paulo state) closed at 41.41 reals or 17.89 dollars per bag of 50 kilos, up 25.6 percent in Real from December 30th 2008.
Even with increases in Brazil, exports remunerated 4 percent more than domestic trades (Sao Paulo state) in the average of January, according to Cepea. Regarding the price parity calculated by Cepea, in the same period, the sugar remunerated 30 percent more than the anhydrous ethanol. In relation to the hydrated, the sugar advantage was of 38 percent. (Cepea - Brazil)