White crystal sugar prices continue on a downward trend in the São Paulo market – the main Brazilian production hub -, in a scenario of reduced liquidity and retracted buyers, while anhydrous and hydrated ethanol prices registered the second consecutive week of appreciation.
Expectations surrounding the vote scheduled for this Wednesday (24) in National Energy Policy Council (CNPE) on increasing the mandatory mixture of anhydrous ethanol in gasoline to 32% (E32) has boosted negotiations involving fuel, points out the Center for Advanced Studies in Applied Economics (Cepea).
On the other hand, for sugar, recent rains have reduced the pace of harvesting and grinding of sugar cane in part of the producing regions, highlights the report by researchers from the entity released this Tuesday (23).
However, the volume of sugar available on the market has still been sufficient to maintain downward pressure on prices. The cautious stance of buyers also contributes to the weakening of negotiations.
Data from the Ministry of Agriculture and Livestock (Mapa) indicate that sugar production in the Center-South fell 25% in the second half of May compared to the same period last year, totaling 2.19 million tons.
According to Cepea, the result reflects both the above-average rainfall in areas of São Paulo and Mato Grosso do Sul and the greater allocation of raw materials for the manufacture of ethanol.
In the biofuels market, prices for hydrated and anhydrous ethanol remain sustained.
According to the entity’s researchers, sellers showed greater firmness in negotiations compared to those in some production units until the middle of last week.
On the demand side, hydrated ethanol increased in Goiás, Mato Grosso and Mato Grosso do Sul, while in São Paulo it remained stable in the last two weeks.
Even so, distributors maintain a cautious stance, given production considered robust and stocks higher than those recorded in the same period of the last harvest.
