Cepea, November 4, 2019 – The CEPEA/ESALQ Index for crystal sugar (São Paulo State) increased in October, although Unica (Brazilian Sugarcane Industry Association) pointed to a production increase in the 2019/20 crop.
Indeed, sugarcane harvesting stepped up, favored by the weather, increasing sugar production in Brazil. Besides, a higher concentration of Total Recoverable Sugar (TRS) was observed between the second fortnight of September/19 and the first half of October/19. However, higher sugar production may be occasional, since the refineries from SP are expected to anticipate the crushing end this year, and the TRS concentration should also decrease in the coming weeks.
Thus, in general, agents from the refineries from SP were unwilling to lower asking prices in the spot market – in some cases, these agents were slightly more flexible, depending on the logistics and sugar quality. Liquidity was also lower. Between September 30 and October 31, the CEPEA/ESALQ Index for crystal sugar rose 3.5%, closing at 65.21 BRL (16.25 USD) per 50-kilo bag on Oct. 31. The average in October was 65.04 BRL, 6.5% up compared to that from Sept/19.
According to Unica, in the 2019/20 season (April/19 to the first fortnight of October/19), the refineries from SP have produced 16.422 million tons of sugar, 1.3% more than that in the same period last year (16.228 million tons). The total amount of sugarcane crushed was 299.041 million tons, 3.66% higher than that from the same period last crop (288.497 million tons).