Sugar and ethanol mills have already set the price for 20.9% of the sugar they intend to export in the next harvest (2022/23), which starts in April of next year, according to a survey carried out by Archer Consulting up to May 31. The percentage is the equivalent of 5.3 million tons, negotiated at an average price of R$1,800 per ton (put at the port of Santos). In May alone, pricing operations were carried out for just over 1.2 million tons at an average price of R$1,920 per ton. The value was below the average obtained in the previous month, of R$1,962 per ton. The chart below was compiled using DataLiner data and shows Brazilian sugar handling in the period from January to April 2019/2021 based on data from DataLiner’: According to Arnaldo Correa, managing partner of Archer Consulting, the mills took advantage of “the new highs reached by the market (in cents per pound) despite a stronger Brazilian currency against the US currency.” In dollars, the average fixed price for sugar for the next season is 14.25 cents per pound. The value does not take into account the forward premium bias.
Sources: Valor Econômico/Datamar News