Rangebound World Sugar
Last week’s rains in Brazil’s Centre-South provided a nice boost for cane to be included in next year’s harvest. Many fields from Campinas through western Sao Paulo state through Curtiba (Parana) received 2 to 3 inches of precipitation last week, helping the developing cane through the seasonal dry period. While current crop (06/07 crop year) harvest was slowed due to the rains, this week will transition to a drier pattern by mid week, and harvest should resume to normal; the next 2 weeks look to remain normal to dry. Indian Monsoon activity was mixed last week with the southern belt receiving plentiful rains, while the northern belt was somewhat light. This week shows strong convection returning to cover much of the northern belt (both Eastern and Western U.P) and the overall pattern continues to be favorable for a healthy crop. No significant market news as October Sugar (NYBOT) opened today’s session trading slightly above Friday’s close of 9.98, reaching 10.12 before briefly dropping back below the 10 cent mark. Traders are likely to be somewhat neutral early in the week as they await this afternoon’s NASS crop condition report to see if any grains news triggers a move in sugar.
