According to the Center for Advanced Studies in Applied Economics (Cepea) at USP, the average price of white crystal sugar traded on the spot market in São Paulo has soared again. On November 1st, the Cepea Indicator, color Icumsa from 130 to 180, closed at R$ 153.04 per 50 kg/bag, repeating, once again, the nominal maximum of the historical series of Cepea. The monthly average price in October was R$ 147.27 per bag, up 3.91% compared to September and 31.94% compared to October 2020 (values deflated by the September 2021 IGP-DI). According to Cepea, the recent increase continues to be related to lower supply. The dollar above R$ 5.60 is also a strong motivation to Brazilian exports, which also helps to reduce domestic supply. In addition, more expensive gasoline at gas stations encourages ethanol production at the expense of sugar.
Sources: CEPEA/Nova Cana (*Translated by Ia Niani)