Cepea, August 16, 2021 – Prices for crystal sugar continued on the rise in the spot market of São Paulo State (SP) in the first fortnight of August – on August 12, the CEPEA/ESALQ Index set a nominal record in the series of Cepea, closing at 125.55 BRL (23.90 USD)/50-kilo bag.
The boost came from the low sugar supply in the current season (2021/22), which has been caused by the dry and cold weather in the areas with sugarcane crops. It is worth to mention that new frosts are forecast for the second fortnight of the month, which may once again damage the sugarcane crops in central-southern Brazil. In this context, agents from many sugar mills in SP were away from the market in the first half of August, assessing if the possible production losses may compromise the sugar volume already sold through contracts.
Despite the lower supply in the spot market, high volumes of crystal sugar were sold by mills early in the month, underpinning liquidity. Between August 2 and 13, the CEPEA/ESALQ Index averaged 121.54 BRL/bag, 5.09% up from that in the first fortnight of July.
In the international market, lower production in Brazil underpinned the prices for demerara sugar at ICE Futures. However, the US dollar appreciation against the Real and the oil devaluation limited the upward trend of prices.