Brazil: Crystal Sugar Spot Prices Slightly Decline as New Crop Season Begins
According to Cepea, Brazil's crystal sugar spot prices saw a slight decline last week. While initial fluctuations were minor, the start of the new crop season, with some mills prioritizing VHP sugar production, led to limited short-term supply of white crystal sugar, supporting prices. The international market remains volatile due to abundant supply and geopolitical factors.
According to the Center for Advanced Studies in Applied Economics (Cepea) at Esalq-USP, crystal sugar prices in Brazil experienced a slight decline last week. Prices fluctuated within a relatively narrow range during the initial days but rebounded towards the end of the period, approaching R$106 per bag.
Cepea researchers indicated that the spot market continued to be influenced by the commencement of the 2026/27 crop season. They explained, "With some mills directing initial production towards VHP sugar, the availability of white crystal sugar remained more limited in the short term, which helped support prices in the latter half of the week."
On the demand side, market activity was more sporadic, without significant pressure to replenish inventories, reflecting a more measured trading environment. Cepea added, "Meanwhile, the international market remains unstable, reflecting a combination of structural factors of abundant supply with specific shocks originating from the geopolitical and energy landscape."
On Friday, May 10, the Cepea/Esalq Crystal Sugar Index stood at R$105.78 per bag. This figure represents a 0.7% increase from the previous week's closing price of R$105.06 per bag.