Jalles CFO: Organic Sugar Output to Remain Stable, Prices Expected to Drop 5%
Jalles CFO Rodrigo Siqueira anticipates stable organic sugar production and sales for the 2026/27 crop season, mirroring the previous cycle. However, the company faces a projected 5-6% drop in international dollar-denominated prices. The U.S. trade policy remains a critical variable, as it is the primary destination for Jalles' organic sugar exports, potentially impacting future prices and volumes.
Jalles' Chief Financial Officer, Rodrigo Siqueira, announced that the company expects to replicate its organic sugar performance from the previous cycle in the 2026/27 crop season, both in terms of production volume and commercial sales. However, the company is preparing for the prospect of lower dollar-denominated prices. While contract negotiations are still underway, current market indications suggest a potential reduction of 5% to 6% in international organic sugar prices. "The price is expected to be 5% below last year's dollar price," Siqueira stated.
Siqueira emphasized that the primary variable of concern for the organic segment continues to be the trade policy of the United States, which serves as the main destination for the company's organic sugar exports. "The United States is our largest market," he explained. Under normal market conditions, Jalles anticipates a crop season very similar to the last. Nevertheless, any tariff changes implemented by the U.S. government could impact both prices and shipped volumes. "There will only be a change if we face a higher tariff than other countries. This could affect price and volume," he added.
Beyond the United States, the company is observing growth in other markets. According to the CFO, Canada increased its purchases of Jalles' organic sugar in the last crop season and remains a key focus for the current cycle.