The value of the Brazilian prize for sugar exports was reduced because of the costs for bulk products in early June this year, two months after the start of the 2021/22 sugarcane crop in the Center-South, starting in April. S&P Global Platts has registered a price of US$ 64.50 per ton for dry bulk, considering the shipment of sugar from the port of Santos to the Chinese port of Rizhao. This is the highest weekly estimate since 11 June 2010, when the entity estimated costs at $66/t. The rising price curve started on June 3rd. Since then, the weekly estimate has soared by 27%. Market participants have said that, at current price levels, some transactions made early in the season at a fixed CFR (cost and freight) price have become unfeasible, making traders delay shipping.
Source: Nova Cana (*Translated by Ia Niani)