Cepea, a research group at the University of Sao Paulo, conducts the Cepea/Esalq crystal sugar index, which fell to the equivalent of $35.61 per 110-pound bag. That rate marks the lowest amount since mid September 2010. Brazil is the globe's top producer of sugar, and the crystal variety is 68 percent of all sugar sold in the nation.
"Crystal sugar prices have been dropping more expressively in the Brazilian market," according to a Monday report by Heloisa Lee Burnquist, a Cepea analyst.
On Tuesday, sugar futures closed up 1.86 percent, a 0.004 cent rise to 0.219 cents per pound.
"Some mills are more willing to trade in this early period of the season, rather than trading at the peak period, when prices might be lower," the analyst's most recent report states. Burnquist also notes slowing demand due to buyers being "unwilling to trade in light of expectations of a supply increase due to the stepping up of crushing activities, which might press down quotes."
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