In February, the CEPEA/ESALQ Index for crystal (Sao Paulo state) increased 13.3 percent in Real, closing at 46.92 reals or 19.79 dollars per bag of 50 kilos on Feb 27th. The support kept coming from the international scenario of limited supply. The global deficit is forecasted at 4.3 percent million tons by the International Sugar Organization (ISO) for 2008/09 crop, against 3.6 million in November.
In general terms, Brazilian mills should start the white sugar production only in April. The harvesting, however, is expected for the second fortnight of March. The initial supply should be directed to the production of ethanol and VHP sugar (export).
Regarding price parity calculated by Cepea, the sugar remunerated 72 percent more than the anhydrous ethanol from February 25th to 27th - this week was shorter due to the Carnival holiday. In relation to the hydrated, the sugar advantage was of 90 percent in the same period. (Cepea - Brazil)