Sugar VHP stocks are low at the season start


   Porto Alegre, June 14, 2021 – Pressure from exports together with this season’s sharper production losses leave the initial volumes of stocks of VHP sugar at negative levels in the short and medium term. The latest data on the Center-South stocks show relatively low volumes for just over a month of shipments of VHP sugar in the Center-South and also low volumes for crystal sugar with up to Icumsa 180 in the same region. Volumes have behaved within expectations for the current phase of the early season, given the important context of pressure from shipments to meet export contracts, besides the losses of the current 2021/22 crop.

    At the end of April, the total volume of VHP stocks in the Center-South was 2.12 million tons, down 10% from 2.37 million tons in the same period of the previous year. In the margin, we have a sharper decline of 23% when compared to the volume of 2.78 million tons observed in March this year.

     Against the historical 5-year average for the same period, we can see a volume 15% higher than the 1.85 million tons usually observed at this time of year. Looking at crystal sugar volumes with up to Icumsa 180, the volume of 1.36 million tons reached in April accounts for an increase of 16% over the same time of the previous year (1.17 million tons).

     In the margin, there is a 35% decrease from the volume of 2.12 million tons observed in the immediately previous month, in March this year. Compared to the historical 5-year average for the same period, current crystal sugar volumes are 26% higher than the volume of 1.08 million tons usually observed at this same time of year.