Weak movement for sugar in Brazil with absent industries
Sugar
Brazil
Published Jan 24, 2023
Tridge summary
According to SAFRAS & Mercado consultant, Maurício Muruci, the industries are well supplied with previous purchases made between November and December, “while also avoiding exposing the plants in the off-season peak period in the Center-South of the Brazil which is in January”. This explains the moderate drop from levels of R$ 136.00 to R$ 134.00 per 50 kg bag for crystal with up to 150 Icumsa in Ribeirão Preto.
Original content
In the international market, purchases are still restricted due to frustration with the Indian government, which reversed its decision to announce extra export volumes in January. “The expectation was that these extra volumes would demand purchases in future positions for the formation of a hedge, which, in the end, will not happen”, evaluates Muruci. Heavy rains on sugarcane plantations in the Center-South in January also put downward pressure on prices in New York due to expectations of recovery in the next season. Brazil should increase its production from 545 to 565 million tons in the Center-South. The physical ethanol market continued its price trend from stable to slightly lower in the third week of January, similar to what has been observed throughout the month. “The distributors continue to act very slowly in the market, leaving the plants without much demand. The purchasing end is also supplied in the medium term in view of the large purchases made throughout ...
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