Morning Call Jun 15th, 2026

NY raw sugar market extended losses for a sixth consecutive session, with July 2026 dropping 9 points on Friday to US$ 13.70 c/lb, bringing weekly losses to 44 points. Ample sugar availability in the global Trade Flow continues to cap any recovery in prices, alongside progress in U.S.-Iran peace negotiations.
 

CFTC: funds and small specs slightly reduced their net short position in NY raw sugar, from 135,104 lots on June 2nd to 132,096 lots on June 9th.
 

Brazil’s National Council on Energy Policy (CNPE) scheduled a meeting for June 24 that is expected to approve the increase in the mandatory ethanol blending rate in gasoline, from 30% to 32%. If approved, annualized demand is projected to rise 930 million liters per year.
 

CS Brazil: the week in the ex-mill ethanol market was marked by low liquidity and a cautious stance from distributors, which continue to purchase only for immediate needs amid expectations of lower prices ahead.
 

CS Brazil: in São Paulo, hydrous ethanol prices for producers were traded at R$ 2.2066/liter, down 0.3% WoW and 13.3% YoY. Meanwhile, anhydrous ethanol reached R$ 2.5078/liter, down 0.8% WoW and 14.9% YoY, both ex-mill and net of taxes.
 

CS Brazil: in Paulínia (SP), the CIF price of hydrous ethanol ended the week at R$ 2.3106/liter, net of taxes, down 3.0% over the week and 12.3% YoY, according to DATAGRO PRA.
 

CS Brazil: considering pol premium, port prices and CBio revenues, VHP sugar for export was equivalent to US$ 14.08 c/lb FOB Santos, 3 points below the return from hydrous ethanol in the domestic market, basis Ribeirão Preto (SP).
 

Australia’s 26/27 crop cane crushing reached 442 k mt through June 7th (+12.5% YoY), while raw sugar production totaled 60 k mt during the period (+27.6% YoY).
 

Brazil: average hydrous ethanol prices for consumers declined to R$ 4.15/liter in the week ended June 12th (-0.7%). In São Paulo, the biofuel reached R$ 3.86/liter (-0.5%), reducing the ethanol-to-gasoline ratio to 59.8%, the lowest level since February 2024.
 

Brazil: hydrous ethanol remained competitive against gasoline in eight states, which together account for 60.5% of national Otto-cycle fuel consumption, up from 49.6% a year earlier.
 

India: monsoon rainfall was 26% below average between June 1st and 10th, with larger deficits recorded in central (-45%) and east/northeast (-39%) regions of the country.