Morning Call Apr 09th, 2026

NY raw sugar market declined again this Wednesday, with May 2026 dropping 35 points to US$ 14.23 c/lb, primarily influenced by the correction in oil prices. The depreciation of the U.S. dollar against the Brazilian real helped partially limit the losses.
 

NY raw sugar prices also remain under pressure from supply-side factors, including increased sugar availability in Thailand and China, as well as the continued pace of price fixations by Brazilian producers.
 

U.S. dollar depreciated 1.4% against the Brazilian real on Wednesday, reaching R$ 5.0899/US$ (Ptax), the lowest level since May 2024, reflecting improved risk appetite in emerging markets.
 

Geopolitical scenario: the announcement of a temporary ceasefire between the U.S., Israel, and Iran reduced the risk premium, boosting equity markets and triggering a sharp decline in oil prices.
 

Geopolitical scenario: despite the initial relief, the ceasefire remains fragile, with new episodes of violence and restrictions in the Strait of Hormuz, keeping uncertainty elevated.
 

Brazil: Minister of Mines and Energy Alexandre Silveira signaled support for increasing the ethanol blend in gasoline to E32 still in 1H 2026, highlighting energy matrix diversification as a competitive advantage and a factor in mitigating fuel price volatility.
 

Brazil: sugar shipment nominations pace remained stable this week, with 33 vessels scheduled to transport 1.330 mmt (+17.1% YoY). China leads the destinations (24.0%), followed by Iraq (10.7%) and Canada (10.2%), according to the DATAGRO Line-up.
 

Brazil: waiting time for berthing at CLI 16/17 terminals, Santos port, increased from 22 to 24 days due to scheduled maintenance, still above the 4 days recorded a year ago.
 

China imported 240 k mt of sugar in February, compared to just 16 k mt in February last year, totaling 2.290 mmt since October 2025 (+48.8% YoY).
 

China sugar imports are projected to reach 5.0 mmt in the 25/26 season, up from 4.63 mmt in the previous season.
 

U.S. ethanol production increased 3.8% in the week ending April 3rd, reaching 1.116 mbpd (+9.3% YoY). Stocks posted a slight weekly increase (+0.2%) to 26.053 million barrels (-3.6% YoY).
 

U.S. gasoline consumption declined 1.4% WoW, reaching 8.564 mbpd (+1.6% YoY).