Brazil. White sugar prices reached new historical levels

According to the Center for Advanced Studies in Applied Economics (CEPEA), in Brazil, white sugar prices in the São Paulo market have reached new historical levels.

Last week, the CEPEA/ESALQ sugar index exceeded 167 reais per 50 kg (579 USD/t) due to increased demand for sugar in the domestic market, while supply was more limited due to increased exports.

This week on the Brazilian domestic market, sugar prices continue to rise, reaching the level of 168.16 reais per 50 kg (586 dollars/t), which is 2.7% more than in early November.

In October, in Central and South Brazil, sugar mills began to complete the processing of cane for the 2024/25 MY. It is expected that most of the factories will stop in November. According to UNICA, as of the end of October, 38 companies in the region have already completed their work. In November, the number of closed sugar factories may more than triple, which will lead to a reduction in sugar production in the country and a further increase in domestic prices. Sugar mills in Brazil usually stop processing sugar cane in December and January when the rainfall increases. However, the recent heavy rains in Brazil resulted in earlier closure of the factories.

Tags: Brazil, sugar