Decline in sugar and oil prices over the past six months has diminished the hope of financial recovery for a number of Brazilian mills, and could put new deal making in the sector on hold, according to industry experts. Raw sugar prices in New York were hovering around 13 cents per pound, down around 40 per cent since the fourth quarter of 2016, to a level analysts and millers say is close to production costs in Brazil centre-south. The price pressure on sugar and ethanol could cut short a nascent financial recovery for many Brazilian mills during a global sugar supply deficit in 2015 and 2016. It could also slow down talks between millers and potential investors and lead to more closures of indebted firms.