Morning Call Aug 03rd, 2026

NY #11: last Friday, October 2026 gained 23 points to US$ 14.66 c/lb, supported by technical correction, short covering, and forecasts calling for below-average monsoon rainfall in India during August and September.
 

NY #11: despite Friday's recovery, October 2026 posted a weekly loss of 11 points, reflecting the persistence of a predominantly bearish fundamental outlook.
 

CFTC: funds and small speculators increased their net short position in the NY raw sugar market from 87,072 contracts on July 21, to 119,681 contracts on July 28.
 

Brazil: prompt shipments of VHP sugar FOB Santos continue to trade at discounts of 40-48 points, compared with 15 points in the same period last year. For August shipments, discounts range from 35 to 40 points.
 

Brazil: white sugar premium rose 2.4% WoW to US$ 138.40/mt, while B150 white sugar for prompt shipment from Santos traded at premiums ranging from US$ 91-95/ton.
 

CS Brazil: ethanol market for producers remained illiquid, with mills restricting offers while distributors continued to make only spot purchases to replenish inventories.
 

CS Brazil: in São Paulo, hydrous ethanol prices averaged R$ 2.0380/liter on Friday (Jul. 31st), down 1.7% WoW, while anhydrous ethanol fell 1.1% WoW to R$ 2.3602/liter, both ex-mill and net of taxes.
 

CS Brazil: in Paulínia (SP), CIF hydrous ethanol prices fell 3.8% WoW to R$ 2.1125/liter, net of taxes, according to the DATAGRO Price Reporting Agency (PRA).
 

CS Brazil: on a sugar-equivalent basis, hydrous ethanol was priced at US$ 13.07 c/lb FOB Santos (Ribeirão Preto basis), while VHP sugar for export reached US$ 14.82 c/lb FOB Santos, widening the spread to 175 points.
 

CS Brazil: rainfall during 2H July resulted in an average of 1.4 lost day of crushing across the region, with the largest impacts recorded in Paraná, where interruptions ranged from 3 to 6 days.
 

CS Brazil: cumulative weather-related downtime in the 26/27 season reached 14.6 lost days of crushing, nearly double the historical average of 7.4 days through the end of July.
 

Brazil: effective August 1st, E32 gasoline came into force, temporarily increasing the mandatory blend of anhydrous ethanol in gasoline from 30% to 32% for an initial 180-day period, in accordance with a CNPE resolution.