Sugar contracts closed higher on Thursday, October 29, in New York and London, driven by an 18% drop in the crush and 23% in production in Brazil's Center-South. Despite the recovery, they are still posting weekly losses; white crystal sugar and ethanol moved higher in Brazil.
Sugar contracts closed higher on Thursday, October 29, in New York and London, driven by lower Brazilian crush and production in the first half of October. Despite the recovery, the market is still feeling the effects of the losses recorded early in the week. In Brazil, white crystal sugar and hydrous ethanol moved higher.
The international sugar market showed a recovery during the session, with gains in the main contracts traded on the New York and London exchanges. The move was supported by signs of tightness in Brazilian supply, after data pointed to a decline in cane processing and sugar output in early October.
On ICE Futures U.S., raw sugar closed higher in the nearby contracts. The March/27 contract advanced 0.13 cents, closing at 19.47 cents per pound. May/27 rose 0.14 cents to 18.95 cents per pound, while July/27 gained 0.11 cents and ended at 18.53 cents per pound. The following contracts showed smaller variations, ranging from steady to slight declines.
On ICE Futures Europe, white sugar also ended the session higher. The December/26 contract advanced US$ 1.90, closing at US$ 527.60 per tonne. March/27 rose US$ 4.00 to US$ 542.70, while May/27 posted a gain of US$ 4.10, closing at US$ 547.60 per tonne.
In the São Paulo market, the CEPEA/ESALQ white crystal sugar indicator kept its upward trajectory. On Thursday, October 29, the 50-kilo bag traded at R$ 129.97, up 0.96% from the previous day. With that result, the indicator accumulated a gain of 7.31% in October. In dollars, the reference stood at US$ 24.08.
The Daily Hydrous Ethanol Indicator for Paulínia (SP) also posted a gain. On Thursday, October 29, the cubic meter was quoted at R$ 2,928.50, a daily gain of 0.57%. For October to date, the advance reached 10.82%.
According to information published by Notícias Agrícolas, the recovery in international prices was supported by an 18% reduction in the cane crush and 23% in sugar production in the Center-South in the first half of October, compared with the same period last year. Rain has hampered operations at the mills and heightened concerns about Brazilian supply.
Even so, despite Thursday's gains, New York contracts were still posting losses for the week, following the sharp drop on Monday, which was also influenced by the depreciation of the real.
