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Cepea, January 3rd, 2024 – In the 2023/24 season, white crystal sugar prices in the spot market of São Paulo surpassed those verified in the crop before. On October 15, the CEPEA/ESALQ Index for crystal sugar (Icumsa 130-180) hit BRL 159.32 per 50-kilo bag, the highest nominal level of the historical series.
Despite the record sugar production in São Paulo state, the good performance of Brazilian shipments reduced the supply in the domestic market, keeping prices at high levels. From April to December (up to Dec. 22) in 2023, the CEPEA/ESALQ Index averaged BRL 147.59 per 50-kilo bag, for an increase of 18.37% compared to that in the year before (BRL 124.68/bag from April to December/22), in real terms (IGP-DI November/23).
The increase of sugar exports was already expected, boosted by favorable international prices, due to the lower global supply. In the 2022/23 world crop, which finished in September/23, India (the second biggest producer) registered a decrease of 13.23% in the production; in the European Union, production dropped 11.26%, according to the USDA.
Abroad, demerara sugar prices increased during the 2023/24 season because of the relative lack of sugar in global terms.
In practically the entire year of 2023, international sales remunerated more than domestic trades, according to Cepea figures. The most significant difference was observed in the first week of September, when the equivalent value of exports remunerated 23.52 Reais per 50-kilo bag more than crystal sales in the spot market in SP.
From January to November/23, Brazil exported 27.536 million tons of sugar, 9.92% more than the total verified in the same period of last year (25.05 million tons), according to Secex. The revenue obtained in 2023 (up to November) is USD 13.67 billion, 35.92% up compared to the same period last year – data from Secex.
As for the domestic demand for crystal sugar in the spot market in São Paulo, it decreased in the 2023/24 season. This scenario can be seen as an effect of the lower availability of the product for domestic trades, due to the increase of exports, or as a reflex of the consumption decrease of industrialized sugar-based products.
Crushing activities of the 2023/24 season may continue up to late December, due to the smaller volume produced. Unica indicates that mills in São Paulo crushed 364.612 million sugarcane tons from April to December/23, 18% up compared to the same period last year. The sugar production in SP totaled 27.354 million tons (+22.6%).
(Cepea-Brazil)
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Fonte: Cepea