Price of a bag of crystal sugar in Brazil reaches new historic high

Preço da saca de açúcar cristal do Brasil atinge nova máxima histórica
A 50 kg bag of crystal sugar reached a record value of 100.68 reais at the close of the session in São Paulo on Wednesday, as the sugar cane harvest ends earlier than expected and the world is heading towards the second year of the sweetener deficit. According to the Center for Advanced Studies in Applied Economics (Cepea), at the University of São Paulo (USP), the bag of crystal sugar rose 0.3 percent from Tuesday's value, of 100.37 reais, the previous record and the first time that the price of a bag surpassed the 100 reais mark since the institution began recording prices in May 2003.

The movement in prices highlights the global shortage of the sweetener after climate problems reduced production in important global producers last year. “In addition to the firm position of the mills in relation to prices, prospects for a smaller supply of sugar on the global market continue to support prices in Brazil,” said Cepea/Esalq in a note published earlier this week.

Datagro projects a global sugar supply deficit of 8.26 million tons in 2016/17. Prices in the domestic sugar market are causing cancellations in some export contracts. Some mills are paying the costs to cancel contracts with trading companies, preferring to sell sugar locally.

 

According to a senior trader at a major international sugar trading company operating in São Paulo, export contracts totaling around 300,000 tonnes had been canceled so far in the current harvest in central-south Brazil, as companies are reaching agreements best in the domestic market. But the operator, who asked not to be identified because he is not authorized to speak publicly about the matter, did not consider the amount relevant given the expected exportable volume from central-southern Brazil this year, close to 25 million tons.

“These cancellations happen every year. Sometimes more, sometimes less, and for different reasons,” he said.

 

 Source: Reuters
Facebook
twitter
LinkedIn

Aboissa supports

Stay up to date with news
and the best opportunities in
agribusiness – sign up now!

Asia

Saudi Arabia

Bangladesh

China

singapore

South Korea

United Arab Emirates

Philippines

India

Indonesia

Iraq

Jordan

Lebanon

Malaysia

Oman

qatar

Türkiye

Vietnam

Hong Kong

America

Argentina

Bolivia

Brazil

Canada

Chile

Colombia

Ecuador

U.S

Guatemala

british virgin islands

Mexico

Nicaragua

Panama

Paraguay

Peru

Uruguay

Suriname

Venezuela

Dominican Republic

Costa Rica

Africa

South Africa

Algeria

Cameroon

Costa do Marfim

Egypt

Liberia

Morocco

Sierra Leone

Sudan

Kenya

Tunisia

Mauricio Islands

Europe

Albania

Germany

Belgium

Bulgaria

Spain

Finland

France

England

Italy

Lithuania

Poland

Portugal

Russia

Türkiye

Serbia

Sweden

Switzerland

Ukraine

Cyprus

Estonia

Ireland

Romania

Oceania

Australia

New Zealand

Request a quote!

Fill out the form and get support for your business needs.
Our experts are ready to offer customized solutions.

*We are currently not working with intermediaries.

By providing my data, I agree with the Privacy Policy.