Agricultura

Agricultura

Fechar
PUBLICIDADE

Agricultura

Index hits new nominal record in 2021

 
Cepea, January 3, 2022 – 2021 started with estimates of lower sugarcane yield for the 2021/22 season in São Paulo state, due to the dry weather that affected crops, especially in the second semester of 2020. The climate continued unfavorable throughout the year, with dry weather in most part of 2021 and frosts in mid-July. In light of that, the lower sugar production was confirmed as crushing activities moved on in SP, limiting the availability of the product in the spot market. Because of that, prices increased during the year, and the CEPEA/ESALQ Index for crystal sugar hit a nominal record for Cepea series – on December 16, the Index closed at 157.43 BRL per 50-kilo bag.

 

In real terms, from April to December/21 (up to Dec. 23), the Index averaged 132.55 BRL/bag, 19.63% up compared to the same period last year (110.8 BRL/bag) – the values were deflated by the IGP-DI November/21.

 

The Index average was stable only from June to July/21, when sales involved large volumes and some mills were flexible, downing prices, because of logistics and storage issues. From August onwards, however, the CEPEA/ESALQ Index resumed moving up, which continued to be verified up to the end of the year.

 

The 2021/22 crop failure led crushing activities to finish in advance, making the off-season even longer than the usual. In some cases, mills in São Paulo needed to buy sugar to accomplish domestic and international contracts.

 

According to Unica, from April to November/21 (up to the first fortnight), mills in São Paulo produced 21.477 million sugarcane tons, 18.26% down compared to the same period last year.

 

At ICE Futures, demerara sugar futures also moved up, influenced by the production decrease in Brazil and the international increase of oil prices. In early April/21, the first contract was traded at 14 cents of dollar per pound, but it closed the month at 17 cents of dollar/pound. On November 17, 2021, the first contract hit 20.42 cents of dollar per pound, the highest level since February/17.

 

According to Secex, from January to November/21, Brazil shipped 25.319 million tons of sugar, 8.78% less compared to the same period in 2020 (27.757 million tons). Despite the reduction, the revenue obtained in the first 11 months of 2021 increased in relation to the same period in 2020, totaling 8.433 billion USD. This scenario is attributed to increases of international values and dollar quotes. In 2020, the revenue obtained was 7.883 billion USD.

 

The International Sugar Organization estimates a deficit of 2.02 million tons in the 2020/21 global crop, which finished in September/21. In the next world season (2021/22), which started in October/21, the forecast is a deficit of 2.55 million tons.

 

(Cepea-Brazil)

 

 

PUBLICIDADE

Curiosidades

PUBLICIDADE
PUBLICIDADE