Cepea, July 18 2019 – Crystal sugar prices dropped in the Brazilian market in the first fortnight of July, but continued around 60 BRL per 50-kilo bag. Agents from mills were not willing to lower asking prices too much, fixing a minimum selling price for the product. Liquidity was slightly lower, due to the holiday in São Paulo on July 9. Between June 28 and July 15, the CEPEA/ESALQ Index for crystal sugar dropped 1.5%, closing at 60.53 BRL (16.11 USD) per 50-kilo bag on July 15.
According to Unica (Brazilian Sugarcane Industry Association), this season (April to June), the mills from SP have crushed 126.987 million tons of sugarcane, 6.84% less than that in the same period last year. Sugar production in SP totaled 6.160 million tons in that period, 11.02% less than that from the same period last season. The production mix continues higher to ethanol, with 59.01% of the sugarcane crushed allocated to the production of the biofuel.
INTERNATIONAL MARKET – The International Sugar Organization (ISO) estimates the global sugar surplus in the 2018/19 crop to total 1.83 million tons, which may constrain price rises in the short-term. On the other hand, expectations for a sugar deficit in the next global cycle (19/20), which starts in October/19, may underpin quotes. According to a report released by Datagro in May/19, the global sugar deficit may total 2.34 million tons, while for the S&P Global Platts, this deficit may be of 2.1 million tons.