Good weather for sugar continues in Brazil and India
Weather in Centre-South Brazil will be slightly dry for the week as a stationary high pressure system is centered over Sao Paulo and Parana. The ridge will keep the region warm for the next few days, then we should expect to see temperatures start to drop over the weekend. As the trough starts to migrate into the region from the northwest, it will bring some moisture to most of the growing areas in Sao Paulo, Parana and Mato Grosso Do Sul. Even though it is a dry week, the weekly rainfall totals for this week and next week (weeks ending 08/25 and 09/01) will finish higher than the totals experienced for the same two weeks of last year. Further, the drier conditions lately have allowed growers to make good progress in the harvest of the current 2006/07 cane crop. In India, the monsoon activity has tapered off slightly, but rains will return over the northern and southern sugarcane growing regions by next week. Weather Trends International expects next week’s precip. totals to average 2.1 to 2.6 inches more than the same week last year. The favorable monsoon has contributed to India’s expectations of a record crop this year, which will further add to the surplus of world sugar. All of this positive supply news coming from the major origins continues to place downward pressure on world sugar futures; sugar for October delivery closed Tuesday’s session at 9.31.




