During the second fortnight of April, Brazilian sugarcane process remained being directed to the VHP sugar (export) and to the ethanol. In this context, sugar prices type above Icumsa 150 moved down in the end of the month. For the product with Icumsa less than 150, in turn, the supply kept low in the period.
The CEPEA/ESALQ Index (Sao Paulo state), which involves Icumsa between 130 and 180, averaged 27.68 reals or 16.64 dollars per bag of 50 kilos on Wednesday, Apr 30th, decreasing 2.22 percent in Real over Apr 15th. Compared to March 31st, the devaluation in the first month of harvest was of 2.16 percent in Real.
According to the latest Unica (Sao Paulo Sugar Cane Agroindustry Union) projection about the 2008/09 crop, the sugarcane production should reach 498.10 million tons in the Center-Southern region, a record and 16 percent higher than the volume produced in the previous crop. For sugar, the total is forecasted at 28.6 million tons (9 percent more) and for ethanol, at 24.3 billion liters (raise of 19 percent). (Cepea - Brazil)
Note: Icumsa means the International Commission for Uniform Methods of Sugar Analysis.