Cepea, July 2, 2021 – Crystal sugar prices were firm in the spot market of São Paulo State (SP) in June. The upward trend was influenced by low supply, which has been observed since the beginning of the current season (2021/22).
Although demand has not increased much, the mills in SP have been able to ask these high prices for sugar. In general, purchasers buy new batches of crystal sugar only to meet sporadic demands. Thus, the current price levels are linked to the lower production of both sugarcane and sugar. With the delay in starting sugarcane crushing, SP State has produced 4.61 million tons of sugar in the current season (from April 1st, 2021, to June 1st), according to data from Unica, 17.9% down from that in the same period last year. Domestic prices have also been underpinned by the good exports’ performance.