The sugar market is trading mixed this Tuesday (26), with a slight increase in futures contracts in New York and a drop in prices in London. The May/25 contract is trading at 19.35 cents per pound on the ICE in the United States, up 0.47%, while on the European stock exchange, the commodity is down 0.20%, quoted at US$541.30 per ton.

Investors continue to pay attention to the appreciation of the dollar on the international market, which favors the competitiveness of exports and stimulates participation in the foreign market. At the same time, concerns about smaller harvests remain on the radar. The first estimates for the 2025/26 Brazilian sugarcane harvest, which begins in April, point to a crushing of between 600 and 610 million tons.

Hydrous ethanol prices continue to fall at the end of the off-season. According to Cepea, mills increased the supply of biofuel last week to sell off stocks from the 2024/25 harvest, which pushed prices down.

Between March 17 and 21, the CEPEA/ESALQ Hydrous Indicator closed at R$2.7572/liter (net of ICMS and PIS/Cofins), down 2.38% compared to the previous week. Anhydrous ethanol also fell, trading at R$3.1906/liter, down 1.67%. Business remains slow, with some distributors putting even more pressure on prices, Cepea highlights.

In the São Paulo spot market, crystal sugar prices also showed volatility over the last week. According to Cepea, this instability is related to the attitude of the mills, which established significant differences between the Icumsa 150 and 180 types. In some cases, the price difference reached R$17 per 50 kg bag.

In the period from March 17 to 21, the CEPEA/ESALQ Indicator for Icumsa crystal sugar from 130 to 180 was R$138.83/50 kg bag, representing a drop of 1.24% compared to the previous week.

With the new harvest officially starting on April 1, the market remains attentive to the evolution of the weather and the start of field work, factors that should strongly influence the price dynamics in the coming weeks.