General Comments:
Futures were lower in both New York and London on more forecasts for rains in Brazil production areas. The precipitation is expected by the end of the week, and initially will provide poor coverage. But it is a sign that the rainy season is coming and ideas are that production potential for Brazil can now start to improve. The rains come as the market thinks more and more about La Nina and the potential for drought in pasts of Brazil this year. Cash markets show weakening differentials between whites and raws, so London remains the weaker futures market. Weaker differentials imply either too much production or too little demand or both. Brazil mills are now processing more for ethanol than Sugar as the ethanol pays better and processors can get some better tax treatment in the country. Upside price potential is limited as there are still projections for a surplus in the world production,and these projections for the surplus seem to be bigger. Trends are sideways in New York and sideways to down in London.
Overnight News:
Brazil should feature warm and dry weather for the next week. China imported 196,578 tons of Sugar in August, down 45% from last year. Calendar year to date imports are now 1.7 million tons, down 21% from last year.
Chart Trends:
Trends in New York are mixed. Support is at 1430, 1410, and 1380 March, and resistance is at 1490, 1520, and 1550 March. Trends in London are mixed to down with objectives of 357.00 and 340.00 December. Support is at 360.00, 354.00, and 348.00 December, and resistance is at 372.00, 375.00, and 384.00 December.
London Sugar # 5 Closing
| Month | Settle | Change | High | Low | Total Vol. |
| Dec 17 | 355.60 | -6.60 | 365.20 | 354.50 | 5,244 |
| Mar 18 | 362.50 | -8.00 | 373.30 | 361.80 | 3,093 |
| May 18 | 372.20 | -9.30 | 384.00 | 371.60 | 563 |
| Aug 18 | 382.10 | -393.80 | 381.40 | 381.40 | 428 |
| Oct 18 | 388.50 | -9.30 | 400.50 | 387.90 | 102 |
| Dated: 26-09-2017 | Source: ICE | ||||
Sugar # 11 Closing
| Month | Settle | Change | High | Low | Total Vol. |
| Oct 17 | 13.21 | -0.53 | 13.88 | 13.11 | 39,810, |
| Mar 18 | 13.91 | -0.44 | 14.47 | 13.81 | 65,641 |
| May 18 | 14.10 | -0.43 | 14.64 | 14.01 | 13,414 |
| Jul 18 | 14.33 | -0.41 | 14.85 | 14.26 | 3,963 |
| Oct 18 | 14.75 | -0.39 | 15.21 | 14.66 | 2,464 |
| Dated: 26-09-2017 | Source: ICE | ||||
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