In the first fortnight of September, Brazilian sugar prices kept increasing, returning to the level of 30.00 reals or 17.24 dollars per bag of 50 kilos. Not even the decreasing international values pressed quotations down. On Monday, Sept 15th, the CEPEA/ESALQ Index for crystal sugar (Sao Paulo state) closed at 30.92 reals or 17.05 dollars per bag of 50 kilos, increasing 3.27 percent in Real over Aug 29th. The support came from mills' retreat and from the firm demand.
The first Unica (São Paulo Sugar Cane Agroindustry Union) revision to the 2008/09 crop in the Center-Southern region has reinforced the upward trend of prices. The sugar production was reduced to 26.5 million tons, a decrease of 7.2 percent compared to the previous forecast. In relation to the previous crop (26.2 million tons), however, the volume should increase 1.1 percent. Exports were projected at 18.5 million tons, down 2.1 percent from the first forecast (18.9 million) - in relation to the 2007/08 crop, however, the volume is expected to rise 12.5 percent.
Domestic trades (Sao Paulo state) has been remunerating more than exports since the second fortnight of July - from Sept 8th to 12th, the advantage was of 7 percent, according to Cepea. Regarding the sugar and ethanol price parity calculated by Cepea, the sugar remunerated 1 percent more than the anhydrous ethanol last week (Sept 8th to 12th). In relation to the hydrated, the sugar remunerated 14 percent more in the same period. (Cepea - Brazil)