Morning Call Jun 10th, 2026

NY July 2026 raw sugar fell 4 points in the latest session, to US$ 14.08 c/lb, accumulating losses of 30 points WoW, following the negative trend observed in energy markets.
 

Oil: optimism regarding a potential resolution of the conflict involving the U.S., Israel, and Iran continues to outweigh both market fundamentals and the escalation of tensions in the Middle East.
 

Oil: after announcing the suspension of mutual attacks between Iran and Israel, President Donald Trump stated that a peace agreement with Tehran was in its “final stages” and could be signed within three days.
 

Oil: these comments reduced the conflict-related risk premium, pressuring prices lower, with Brent August 2026 declining 3.0% in the latest session to US$ 91.45/bbl.
 

Brazil: according to DATAGRO estimates, gasoline sold by Petrobras remains 25.7% below import parity, while diesel is priced 28.1% below parity.
 

Brazil: with the federal fuel subsidy reaching up to R$ 0.89/liter, Petrobras could still increase gasoline prices by as much as R$ 0.45/liter without affecting end consumers.
 

Brazil: the CNPE is expected to meet within the next 15 days to deliberate on increasing the mandatory blend of anhydrous ethanol in gasoline from 30% to 32% (E32). According to DATAGRO estimates, the measure could increase annual demand for anhydrous ethanol by approximately 930 million liters.
 

Brazil: last week, hydrous ethanol at the pump remained competitive against gasoline in Bahia (70.0%), the Federal District (63.7%), Goiás (65.6%), Mato Grosso (58.7%), Mato Grosso do Sul (63.4%), Minas Gerais (66.8%), Paraná (64.3%), and São Paulo (60.1%).
 

Brazil: in São Paulo, the average hydrous ethanol price declined 1.3% WoW to R$ 3.88/liter. Meanwhile, the average gasoline price remained virtually unchanged at R$ 6.46/liter (-0.15%).
 

U.S. Senate leaders have begun discussions to advance legislation that would permanently authorize year-round sales of E15 gasoline nationwide. The bill has already been approved by the House of Representatives, and expectations are growing that it could be enacted in 2026.
 

Philippines: as of May 24th, 25/26 cane crushing reached 22.68 mmt (-6.3% YoY), while raw sugar production totaled 1.81 mmt during the period (-7.0% YoY).