The average prices of the main sugarcane derivatives, crystal sugar and ethanol, fell last week in the market in the state of São Paulo. In the case of sugar, according to researchers from the Center for Advanced Studies in Applied Economics (Cepea) at Esalq/USP, despite the still reduced supply, the decline in demand put pressure on prices. The harvest climate linked to the international devaluation of demerara sugar has caused buyers to wait for new lows.
In general, Cepea researchers point out that the harvesting and crushing of sugar cane for the 2024/25 harvest continues without interruption, due to the dry climate in SP. However, plants are prioritizing the delivery of crystal contracts, which reduces availability for negotiations on the spot market.
Yesterday (4/29), the Cepea/Esalq indicator for white crystal sugar had an average price of R$144.98 per 50-kilo bag, an accumulated drop of 0.35% in the month of April.
In relation to hydrated ethanol, after five weeks of growth, the Cepea/Esalq indicator fell again in the São Paulo market. According to Cepea researchers, the pressure came mainly from the increase in spot biofuel supply.
In addition to the normalization of grinding and the return of industrial activities, some plants had to make new sales.
Still according to Cepea, buyers were even more active, purchasing larger volumes – participation was mainly from distributors of different sizes.
Between April 22 and 26, the Cepea/Esalq indicator for hydrous had an average of R$ 2.2981 per liter (net of ICMS and PIS/Cofins), a decrease of 6.42% compared to the previous period. In the case of anhydrous, the average weekly price was R$ 2.7175 per liter, a drop of 1.35%
