Cepea, December 1, 2020 – Opposite to the high liquidity that had been observed since early November, the trading pace for crystal sugar was slightly slower in the spot market of São Paulo State (SP) in the second fortnight of the month. Demand from purchasers was lower, since these agents have stocks, due to recent acquisitions. Still, agents from mills continued unwilling to lower asking prices.
Thus, on Nov. 30, the CEPEA/ESALQ Index for crystal sugar (SP State) closed at 110.79 BRL (20.70 USD)/bag, 10.1% up in the month.
This scenario is also linked to the fact that a higher number of sugar mills has begun the offseason, which allowed the mills still in operation to ask higher prices in the spot market. Besides, price rises in the international market and the strong dollar favor Brazilian exports, reducing supply in the domestic market even more.
As regards the end of sugarcane crushing in the 2020/21 season, according to Cepea sample, only 12.5% of the mills in central-southern Brazil will be operating in December – the remaining ended production in November.