from Naval Research Lab
Current satellite showing a lull over cane regions. Also, overnight sugar up almost 6%
Last week’s rainfall totals in India’s sugarcane regions has been light in both growing belts; see IMD map below.
Current water vapor satellite is showing less activity in more weak activity & this supports the JulAug dryness that the Weather Trends long range forecast had predicted for this period. With tight physical supply, this is constructive for #11 futures.
The Food and Agricultural Organization’s Food Price Indices through June are shown below. Note the move in sugar since May; many of the reasons for this upward move have been discussed and anticipated in our weekly reports over the last few months. Most recently, a widely distributed estimate from Canaplan for the Brazilian Centre-South crop has put the current crop at 520 mmt. UNICA’s mid July estimate for the C-S region was 533+mmt.
October sugar trading at 31.06 this morning (+4%)