Strong demand is supporting the upward movement in prices.
The prices of the main sugarcane derivatives—sugar and ethanol—are on the rise in the spot market of São Paulo, according to the Center for Advanced Studies in Applied Economics (Cepea) at Esalq/USP.
As of Monday, October 21, the Cepea/Esalq indicator for crystal white sugar recorded an average price of R$ 155.48 per 50-kilogram sack, an increase of 6.26% since the beginning of October.
According to Cepea researchers, strong demand is supporting the upward price movement. Additionally, São Paulo sugar mills are restricting supply due to a large volume committed to exports and reduced productivity caused by wildfires recorded in August.
Brazilian sugar exports continue at a robust pace this month. Data from the Foreign Trade Secretariat (Secex) show that the daily average volume of sugar and molasses exported by Brazil in the first two weeks of October was 33.6% higher than the same period in 2023.
Average prices for both hydrated and anhydrous ethanol also increased last week.
Cepea researchers explain that this support came from the firm stance of many mills, which are mindful of the end of the crushing season and the potential increase in demand in the final months of the year, as is typical for this period.
From October 14 to 18, the Cepea/Esalq indicator for hydrated ethanol closed at R$ 2.5518 per liter (net of ICMS and PIS/Cofins), up 1.43% from the previous week. For anhydrous ethanol, the increase was 4.62%, reaching R$ 2.8847 per liter.
