REPORTS

Today, US financial markets will be closed today for Memorial Day 
The escalation of China/US tensions over Hong Kong triggered a more than $3.00 sell-off in crude oil which in turn spilled into a sharp sell-off in sugar. But as crude oil stabilized over the remainder of its session, so too did sugar, as after a brief dip to a marginal new low of 10.87c/lb, prices turned higher and July closed at 10.93c/lb, 5 points lower than its previous close.

Trading ranges: N 1100-1066; V 1099-1070.

On the one hand, we pointed out that the sugar market seems to have a strong resistance on the approach to the previous high at 11.50c/lb. On the other hand, fundamental conversations are running the gamut each day around prospects for the real and energy prices and the degree to which Brazilian supply will be delayed but not altered. Many continue to expect surpluses ahead, particularly if prices stay high in the interim. But short-term fundamental perspectives remain divided.