Sugar prices in Brazil kept the downward trend in the first fortnight of May. The CEPEA/ESALQ Index of crystal sugar closed at 40.00 reais or 22.12 dollars per 50-kilo bag on Friday, June 14, for a decrease of 3.03 percent in the month.
Supply was higher than the demand and purchasers preferred to remain retracted and wait for new price drops. In addition, Brazilian exporters keep shipping sugar to accomplish contracts closed in the last season as well as more recent ones. As a result, liquidity in domestic market remained low.
While the CEPEA/ESALQ Index of crystal sugar averaged 40.59 reais per 50-kilo bag from June 7-11, price quotes to be delivered in August 2010 at Liffe (London) would be equivalent to the average price of 43.23 reais per bag. It was considered 80 dollars per ton FOB costs and 25 dollars per ton quality discount. (Cepea - Brazil)