Morning Call Jul 15th, 2026

NY #11: The October 2026 raw sugar contract rose 13 points on Tuesday to US$ 14.88 c/lb, supported by the approval of Brazil's mandatory E32 blend increase and higher crude oil prices.
 

Despite the rebound, the market remains close to US$ 15.00 c/lb, tracking weather conditions in Brazil's Center-South and Asia, the Indian monsoon, and the impact of Middle East tensions on oil prices.
 

Brazil: National Energy Policy Council (CNPE) approved raising the mandatory ethanol blend from E30 to E32 for 180 days, with the possibility of extending the measure for another 180 days.
 

Brazil: according to DATAGRO estimates, the new blend mandate could increase anhydrous ethanol consumption by approximately 930 million liters on an annualized basis.
 

Brazil: technical tests found no significant impacts on vehicle performance or durability, including for non-flex vehicles, reinforcing the feasibility of the measure.
 

Brazil: government and industry continue evaluating even higher ethanol blends, such as E35, with technical studies still underway.
 

CS Brazil: in the physical ethanol market, the DATAGRO PRA indicated limited liquidity on Tuesday, with distributors maintaining a cautious stance amid increased supply from mills, supported by favorable weather conditions.
 

CS Brazil: in São Paulo, hydrous ethanol at the producer level averaged R$ 2.1456/liter on Tuesday, down 1.8% WoW, while anhydrous ethanol decreased 0,35% WoW, to R$ 2.5078/liter, both PVU/PVD, excluding taxes.
 

CS Brazil: in Paulínia (SP), the CIF price of hydrous ethanol reached R$ 2.2347/liter, excluding taxes, down 2.8% WoW, according to the DATAGRO Price Reporting Agency (PRA).
 

CS Brazil: a more concrete market reaction is expected over the coming days, as distributors and producers price in the impact of the new blend mandate on demand.
 

CS Brazil: rainfall over the past weekend ranged from 5 to 15 mm across sugarcane areas in Paraná, southern Mato Grosso do Sul, and the microregions of Bauru, Piracicaba, and Presidente Prudente.
 

CS Brazil: Dry weather is expected to return over the coming days, with temperatures gradually increasing, while new rainfall is forecast only between late July and early August.
 

Philippines: red scale insect infestation has already affected more than 70 thousand hectares of sugarcane, including over 30% of the cultivated area on Negros Island, which accounts for more than 60% of the country's sugar production.
 

Philippines: 25/26 (Sep/Aug) cane crushing reached 23.07 mmt by June 21 (-10.0% YoY). Raw sugar production fell 10.2% to 1.847 mmt, while white sugar production declined 1.5% to 669 k mt.