Due to the significant ethanol prices increases, sugar lost advantage against ethanol last week in the Sao Paulo state. This change concerning the anhydrous has not been observed since December of 2005 and, in relation to the hydrated, since Nov/04. Last week, the anhydrous remunerated 7 percent more than sugar and the hydrated, 2 percent more.
Another modification was the retaking of the domestic sugar trades advantage over exports, due to the decrease in the international market. Price parity calculated by Cepea shows that the domestic market remunerated 1 percent more than exports during last week.
In the domestic market, even with the off-season period of the 2006/07 crop, prices kept almost unchanged. Last Friday, Mar 30th, the CEPEA/ESALQ Index for crystal sugar (Sao Paulo state) averaged 34.65 reals or 16.81 dollars per bag of 50 kilos, almost unchanged in the accumulated of March. In dollar, the increase was of 3 percent in the same period.