São Paulo Sugar Market Sees Trading Recovery Amid Price Fluctuations in Early 2026
The São Paulo sugar market resumed trading in early 2026 with rising volumes but experienced price drops due to increased supply of lower-quality sugar, while ethanol prices climbed amid supply constraints.
- • Trading volume in São Paulo sugar market recovered after year-end holidays.
- • Sugar average price fell 2.28% to R$107.49 per 50 kg sack due to lower quality sugar supply.
- • Higher-quality sugar maintained relatively higher prices.
- • Hydrated ethanol prices exceeded R$3.00/liter amid lower supply and increased demand.
Key details
The São Paulo sugar market began 2026 with a noticeable recovery in trading volumes, reflecting the restart of industrial activities after the year-end holidays. From January 5 to 9, the CEPEA/ESALQ Indicator for sugar averaged R$ 107.49 per 50 kg sack (Icumsa 130 to 180), marking a 2.28% decline from the previous week's average of R$ 109.99. This price drop was primarily driven by an increased availability of lower-quality sugar (up to 180 Icumsa), while higher-quality sugar (up to 150 Icumsa) maintained relatively higher prices. Market analysts noted that the previous week exhibited low liquidity due to the holiday recess and cautious buyer behavior, which limited transactions and saw producers hold back stocks anticipating better off-season prices. This stock retention, combined with typical early-year reduced demand, contributed to the price decrease and transaction slowdown.
In parallel, hydrated ethanol prices rose above R$ 3.00 per liter for the first time in the 2025/26 harvest, as reported by CEPEA, spurred by reduced supply towards the season's end and active distributor demand. The CEPEA/ESALQ Indicator for hydrated ethanol closed at R$ 3.0228/liter, up 2.26%, while anhydrous ethanol also rose 1.43%, closing at R$ 3.4170 per liter.
These market movements underscore a period of adjustment and normalization following holiday downtime, with quality distinctions influencing price trends and producers strategizing stock levels amidst fluctuating demand conditions.
This article was synthesized and translated from native language sources to provide English-speaking readers with local perspectives.
