The sugar from the new crop (2007/08) started to be traded during the last days of April, increasing the supply. Before, the main reason for the decreases was the stocks trades from the previous crop. Buyers, enough supplied, retreated, betting on new devaluations.
The CEPEA/ESALQ Index of crystal sugar (Sao Paulo state) averaged 32.16 reals or 15.80 dollars per bag of 50 kilos on April 30th, down 7.2 percent in Real and 6 percent in dollar from the beginning of the month to Apr 30th. Price parity calculated by Cepea shows that the domestic market remunerated (Sao Paulo state) 20 percent more than exports during last week of April.
According to the Unica (Sao Paulo Sugar Cane Agroindustry Union), until the last Wednesday, 97 mills of the Center-Southerner region started to harvest the 2007/08 crop. The Unica also presented a forecast about the sugarcane production in the same region, which should reach 420 million tons this crop.