Cepea, August 3, 2020 – Crystal sugar prices increased in the spot market of São Paulo State in July. As the dollar has surpassed 5 BRL and sugar production has increased in Brazil, refineries continued to allocate higher sugar amounts to the international market, reducing supply in the domestic market, primarily of the Icumsa 150 sugar type. Demand, in turn, continued weak in the spot, since purchasers have recently received sugar from deals previously closed.
Between June 30 and July 31, the CEPEA/ESALQ Index for crystal sugar (São Paulo State) rose by 3.07%, closing at 78.46 BRL (15.05 USD) per 50-kilo bag on July 31.
As regards the 2020/21 sugarcane crop, in São Paulo, the dry weather favored the harvesting and sugar production at refineries in July. According to Unica (Brazilian Sugarcane Industry Association), from April 2020 to the first fortnight of July/2020, the refineries from SP State processed 167.297 million tons of sugarcane, 10.55% more than that in the same period last year. Sugar production has been higher than ethanol production, totaling 11.286 million tons in that period, 50.59% more than that in the 2019/20 season.
From January to June, Brazil exported 11.46 million tons of sugar, according to Secex, 52.67% more than that in the same period last year.