Morning Call Jul 08th, 2026

NY October 2026 raw sugar dropped 8 points in the latest session to US$ 15.14 c/lb. Despite the recent incorporation of a weather risk premium, the comfortable surplus in the global sugar Trade Flow and the weakness of the physical market continue to limit more sustained upside.
 

London #5: the white premium Aug/Oct fell 3.9% WoW to US$ 142.12/mt, while the Oct/Oct premium declined 5.2% to US$ 133.12/mt, reflecting the gradual recovery of trade flows through the Persian Gulf.
 

CS Brazil: prompt VHP sugar shipments through Santos Port are being traded at a 40-point discount, the same level currently quoted for August shipments.
 

CS Brazil: the return of dry weather and the resumption of crushing operations have renewed downward pressure on the ethanol market, with distributors maintaining a cautious stance, making only spot purchases while expecting further price declines.
 

CS Brazil: with the gradual normalization of industrial operations, the weather factor has ceased to support the market, reinforcing expectations of ample ethanol availability, although market liquidity remains limited.
 

CS Brazil: in São Paulo, producer hydrous ethanol traded on average at R$ 2.1865/liter on Tuesday, down 4.1% WoW, while anhydrous ethanol fell 2.9% WoW to R$ 2.5167/liter, both ex-mill net of taxes.
 

CS Brazil: in Paulínia (SP), CIF price of hydrous ethanol settled at R$ 2.2988/liter, net of taxes, down 3.7% WoW, according to DATAGRO Price Reporting Agency (PRA).
 

CS Brazil: a new cold front is expected to reach the region from July 11th onward, bringing rainfall to part of the cane-growing areas, although forecast accumulations are expected to remain below those recorded in late June.
 

Brazil: sugar exports totaled only 223.9 k mt during the first week of July, with a daily average of 74.6 k mt (-52.2% YoY), according to preliminary SECEX data.
 

Brazil: CNPE will meet today and is expected to approve an increase in the mandatory anhydrous ethanol blend in gasoline from E30 to E32, a measure with the potential to increase annual ethanol demand by approximately 930 million liters.
 

China: the 25/26 crop was officially concluded on June 27th, with sugar production reaching 12.966 mmt (+16.7% YoY), the highest volume in 12 years.