BRAZIL: Sugar volumes traded in Sao Paulo remain stable; ethanol prices fall

Published: 07/10/2018, 10:09:19 PM

The volumes of sugar traded in Sao Paulo's spot market remained stable in the first week of July, in relation to the precious week, and ethanol prices fell despite heated demand, according to data by the Centre of Advanced Studies on Applied Economics (CEPEA), reports Anna Flavia Rochas for Sugaronline.

CEPEA/ESALQ index for crystal sugar prices (Icumsa, 130-180) was up 1.07% in the week of July 2-6, in relation to the previous week, at BRL57.92 per bag of 50 kilos.

Brazilian sugar exports this year are 23.52% lower than totals exported in the first six months of 2017, at 9.8 million tonnes. Revenues from exports decreased 41.8% in the first half of the year, to US$3.2 billion, according to data by the Brazilian government compiled by CEPEA.

The demand for ethanol remains strong in the Brazilian domestic market in July, but prices fell in the first week of the month. Some mills that are not eligible for ICMS tax collection have sold the product at lower prices during that period. Researchers at CEPEA also said in a note released Tuesday (10) that lower prices are related to the supply of some mills in need of make cash.

CEPEA/ESALQ index for hydrous ethanol closed at BRL1.4736 (US$0.3768) per litre in the week of July 2-6, down 2.21% from the previous week. The index for anhydrous ethanol price was down 4.6%, to BRL1.6681 (US$0.4265) per litre.