Morning Call Apr 20th, 2026

NY raw sugar market closed the week lower, with May 2026 declining 35 points on Friday to US$ 13.31 c/lb, accumulating a 44-point loss on the week.
 

Sugar prices remain under pressure, with stronger crops in Thailand and Pakistan increasing the exportable surplus and reducing short-term deficit expectations. Compounded by expectations of a more comfortable Trade Flow, supported by the strong pace of Brazilian exports and weaker demand from Indonesia.
 

CFTC: funds and small specs increased their net short position in the NY raw sugar market from 101,004 lots on April 7th to 147,214 lots on April 14th.
 

Oil and refined product prices declined sharply following signals of the reopening of the Strait of Hormuz and easing tensions in the Middle East, reducing support for sugar prices.
 

U.S. dollar reached R$ 4.9695/US$ Ptax last Friday, down 1.1% on the week and the lowest level since March 7th, 2024, helping to partially offset losses in NY.
 

CS Brazil: the combination of lower sugar prices and a stronger Brazilian Real pressured mill remuneration, with the equivalent #11 sugar price in reais declining to R$ 1,519/mt (down 4.2% WoW).
 

CS Brazil: in São Paulo, hydrous ethanol prices for producers reached R$ 2.5555/liter last Friday (down 6.3% WoW), while anhydrous ethanol prices reached R$ 2.9747/liter (down 7.8% WoW), both ex-mill and net of taxes, according to DATAGRO PRA.
 

CS Brazil: in Paulínia (SP), CIF price of hydrous ethanol declined 8.1% WoW to R$ 2.6207/liter, net of taxes, according to DATAGRO PRA.
 

CS Brazil: in parity terms, VHP sugar FOB Santos was equivalent to US$ 14.39 c/lb, 172 points below the return of hydrous ethanol in the domestic market (US$ 16.11 c/lb FOB Santos, Ribeirão Preto/SP basis).
 

CS Brazil: after a rainy start to April, precipitation has eased across most of the region. In key cane-producing areas, weather conditions are now drier, with temperatures near or above average, favoring the progress of the 26/27 crop.
 

CS Brazil: 2H April is expected to be marked by drier and warmer conditions, with isolated rainfall expected due to the passage of a cold front around April 26th, but without significant volumes.
 

Mexico: cane crushing for the 25/26 crop reached 36.81 mmt as of April 11th (down 0.9% YoY), while sugar production reached 3.96 mmt over the same period (up 2.9% YoY).