Morning Call May 11th, 2026

NY July 2026 raw sugar settled at US$ 14.69 c/lb in the latest session, up 15 points on the day, mainly supported by the depreciation of the U.S. dollar against the Brazilian Real, while still posting a weekly decline of 26 points.
 

NY #11: the market fluctuated throughout the week; prices initially moved higher, supported by the rally in oil prices and the stronger ethanol-oriented mix in CS Brazil, which reduced prompt VHP sugar availability.
 

NY #11: the recovery in prices encouraged Brazilian producers to increase hedge fixing activity, pressuring the market and triggering profit-taking throughout the week.
 

CFTC: funds and small specs reduced their net short position in the NY raw sugar market from 128,503 lots on April 28th to 87,289 lots on May 5th.
 

U.S. dollar settled Friday at R$ 4.8999/US$ PTAX, down 1.8% WoW and the lowest level since January 2024, reflecting stronger U.S. payroll data and lower global risk aversion.
 

CS Brazil: considering the polarization premium, the NY raw sugar price converted into Brazilian Reais reached R$ 1,654/mt on Friday (-27.7% YoY), down 12.8% since the beginning of the year, maintaining pressure on mill margins.
 

CS Brazil: ethanol prices for producers remain under pressure due to the progress of the 26/27 crop in the region and the stronger allocation of the production mix toward ethanol at the start of the season. Some mills negotiated volumes at lower prices, while others remained away from the spot market.
 

CS Brazil: last Friday, hydrous ethanol prices for producers in São Paulo reached R$ 2.2741/liter, down 1.3% WoW, while anhydrous ethanol traded at R$ 2.5928/liter, down 3.8% WoW, both ex-mill and net of taxes.
 

CS Brazil: in Paulínia (SP), the CIF price for hydrous ethanol reached R$ 2.3662/liter, net of taxes, down 1.9% WoW, according to the DATAGRO Price Reporting Agency (PRA).
 

U.S. ethanol exports totaled 832 million liters in March (+10.2% YoY), reaching 2.457 billion liters in the cumulative total for 1Q26 (+19.9% YoY), according to USITC data.
 

Canada remained the main destination for U.S. ethanol in March, with 285 million liters (34.2%), followed by the Netherlands (18.8%), the Philippines (6.9%), Colombia (6.1%) and Spain (5.3%).