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Sugar steady in the Brazilian domestic market and ethanol on the rise in Paulínia

CEPEA/ESALQ white crystal sugar remained stable at R$ 128.86 per 50-kilo bag, with a daily decline of 0.02% and a gain of 0.40% in November. Hydrous ethanol rose 0.90% in Paulínia, to R$ 3,015.50 per cubic meter.

What supply and demand factors explain the contrast between steady sugar and rising ethanol?

International sugar quotations were not released this Wednesday (11) due to holidays in New York and London, so there was no update of the contracts traded in those markets for the day's close. In the Brazilian domestic market, the CEPEA/ESALQ white crystal sugar indicator showed stability, while hydrous ethanol advanced in Paulínia (SP).

Domestic market

In São Paulo, the CEPEA/ESALQ white crystal sugar indicator quoted the 50-kilo bag at R$ 128.86, with a slight negative variation of 0.02% compared with the previous session.

Even with the slight daily decline, the indicator maintains a gain of 0.40% so far in November. In dollars, the reference stood at US$ 23.17.

Ethanol

The Daily Hydrous Ethanol Indicator of Paulínia (SP) posted an advance in the session: the cubic meter traded at R$ 3,015.50, an increase of 0.90% from the previous day.

With that result, the indicator widened its accumulated gain in November to 2.95%.

Analysis

According to information published by Notícias Agrícolas, the expectation of higher Indian production remains a pressure factor on sugar. Through November 5, the country had produced 1.29 million tonnes, nearly four times the volume of the same period a year earlier.

On the other hand, rains in the Brazilian Center-South are hurting crushing and reducing supply in the short term. Projections of a global deficit for 2026/27 and weather risks in India and Thailand remain among the support factors tracked by the market.