Brazil: São Paulo Sugar Prices Rebound, But Export Market Remains More Profitable

According to the Center for Advanced Studies in Applied Economics (Cepea) at Esalq-USP, the spot sugar market in São Paulo state saw increased trading activity last week. This surge was driven by more active buyers looking to replenish their inventories, anticipating further price increases in the short term. As a result, the Cepea/Esalq indicator for white crystal sugar in São Paulo rose, approaching R$104 per 50 kg bag. On Friday, the 27th, the Cepea/Esalq Crystal Sugar Indicator stood at R$103.29 per bag, marking a 1.9% increase from the previous week's R$101.32. Cepea researchers highlight that supply is more restricted during this off-season period, reinforcing the upward trend in sweetener prices. However, the research center added, "Even with the rise in crystal sugar prices in the São Paulo spot market, calculations show that the international market remained more advantageous for yet another week." This indicates that despite domestic price gains, export opportunities continue to offer more attractive returns for Brazilian sugar producers.