Cepea, October 17 2019 – Crystal sugar prices increased in the spot market of São Paulo State in the first fortnight of October, reflecting the current low supply, mainly of higher quality sugar. On October 15, the CEPEA/ESALQ Index for crystal sugar (SP) closed at 65.25 BRL (15.69 USD) per 50-kilo bag, the highest nominal level since late May/19 and 3.5% higher than that on September 30. Between October 1 and 15, the Index averaged 64.67 BRL per 50-kilo bag, 6.9% up compared to the average in the first fortnight of September.
Besides the lower production estimated for the 2019/20 crop, large amounts of crystal sugar were sold in the spot market in both July and August, leading refineries to reduce the volumes supplied for new deals. As regards the demand in the first half of October, it was lower. Thus, liquidity decreased and larger volumes were only traded occasionally.
According to a report from Unica (Brazilian Sugarcane Industry Association) on the 2019/20 crop, sugar production in São Paulo State between April and September/19 totaled 15.046 million tons, 2.85% less than that from the same period last season.
In the second half of September, the refineries from SP produced 1.25 million tons of sugar, a staggering 47.6% up compared to that in the first fortnight of September/18 (847 thousand tons of sugar). According to Unica, this increase reflects the higher concentration of TRS (Total Recoverable Sugar) per ton of sugarcane, which increased from 144.85 kilos in the first 15 working days of September 2018 to 154.38 kilos in the same period of September 2019.
EXPORTS – This year (January to September), Brazil has shipped 13.078 million tons of sugar, 18.1% down compared to that in the same period last year. Algeria has been the number one destination for the Brazilian sugar, having purchased 1.613 million tons, followed by Bangladesh (1.219 million tons), China (1.148 million tons) and Saudi Arabia (1.044 million tons). Therefore, all relevant sugar-importing countries have not individually imported 2 million tons each.