Oil swings inflict over the 'IC sugar hundred' prices as offseason starts being felt in the spot market

Dollar depreciation and oil shortfalls pressed down sugar quotations recently, strongly supported by the Russia-Ukraine war upheavals. Even though some sudden changes of pace the market already expects oil prices at high levels, encouraging Brazilian mills to prioritize ethanol production at the beginning of the 2022/23 season. ICE sugar futures remain strong and nosing up.
In consequence crystals continued to rise in the spot market in the last week of March in transition to April, and now keeping it at a steady upward trend. Despite this, the demand remained still, and the prices were supported by low stock of IC180 at sugar mills.
Most of volume are fulfilling existing contracts, reducing supply in the market for the price sensitive buyers. As for the new 2022/23 season, the mills in São Paulo are expected to begin production in mid-April according to the Unica portal.
During last week of March and 1 April , Icumsa 130 – 180 averaged USD 602/mt delivered in São Paulo state, 1.51% higher than a week before.