Brazilian sugarcane growers supplying crops to sugar and ethanol millers in the state of Sao Paulo saw revenues decline 4.87% in July compared with June, according to the Consecana index.
Sao Paulo concentrates a big part of the sugarcane mills operating in Brazil.
One kilogram of total recoverable sugars from cane crops, a measure referred to in the industry as ATR, finished July priced at Reais 0.4702 ($0.23), down from Reais 0.4943 in the previous month.
Since the start of Brazil's center-south sugarcane harvest in April, the Consecana index has declined 1.95% versus the same period of last year.
The index is used as a floating price mechanism by millers who purchase feedstock from third-party suppliers. The monthly ATR is calculated by a formula that incorporates sugar and ethanol prices in the domestic and international markets as quoted by agricultural research group CEPEA/ESALQ.
The Consecana system has been considered a benchmark for cane supply contracts in Sao Paulo since 1999.
