Morning Call Apr 24th, 2026

NY raw sugar market was broadly flat on Thursday, with May 2026 rising just 3 points to US$ 13.60 c/lb, with limited support from oil prices and the exchange market.
 

U.S. dollar weakened 0.2% against the Brazilian Real to R$ 4.9539/US$ (Ptax), the lowest level since March 7th, 2024, down 10.0% since the beginning of the year.
 

CS Brazil: sugar equivalent price in Real fell to R$ 1,548/mt (with pol), down 34.0% YoY, significantly pressuring mill margins at the start of the 26/27 crop.
 

CS Brazil: in the ethanol market for producers, the advance of the harvest is increasing supply and intensifying selling pressure, with mills accelerating sales amid expectations of lower prices at peak crushing.
 

CS Brazil: hydrous ethanol prices for producers in São Paulo reached R$ 2.4485/liter on Thursday, down 5.8% WoW, while anhydrous ethanol was traded at R$ 2.8978/liter, down 2.7% WoW, both ex-mill and net of taxes, according to DATAGRO PRA.
 

CS Brazil: in Paulínia (SP), hydrous ethanol CIF prices reached R$ 2.5488/liter, net of taxes, down 5.2% WoW, according to DATAGRO PRA.
 

CS Brazil: on a parity basis, hydrous ethanol settled at US$ 15.58 c/lb FOB Santos (RP/SP basis), maintaining a premium of 117 points over export VHP sugar, estimated at US$ 14.41 c/lb FOB Santos.
 

Brazil: hydrous ethanol remained competitive against gasoline in Mato Grosso (67.9%), Mato Grosso do Sul (67.7%), Paraná (69.5%) and São Paulo (67.4%), while losing competitiveness in Goiás and Roraima over the past week. Together, these states account for about 37.6% of Otto-cycle fuel consumption in 2026.
 

Brazil: the Federal Government submitted to Congress a proposal creating a mechanism to smooth fuel prices, with temporary cuts (two-month windows) in PIS/Cofins and CIDE whenever there is an increase in oil-related tax revenues.
 

Brazil: the proposal aims to limit the pass-through of higher international prices to domestic fuel prices and would be fiscally neutral, with tax relief offset by higher revenues from oil royalties and commercialization.
 

Indonesia: according to the USDA, sugar production is expected to decline to 2.5 mmt in 26/27, with the crop pressured by strong El Niño conditions.
 

Indonesia: the current import quota is insufficient given estimated domestic consumption of 7.25 mmt, indicating a likely need for additional import releases to ensure supply.