REPORTS

We see very little to encourage the bulls at present. It has been reported today that India would be seeking to force mills to export 2-4 million MT once the 20$ export duty is abolished, although how that will be done is open to question. It shows that the authorities are very concerned that internal prices could drop further as a result of the expected record crop ( now circa 28 MMT) and that arrears in cane payments to farmers will increase.
There are reports (ECRUU/ Sugarinfo Net) that China may grant import licences of up to 1.5MMt. 1.35 MMt of these licences would be shared by the 3 state-run companies. A decision is expected this weekend and this may have a short term influence on the market. However, reports of raws imports held in bond and awaiting clearance cast doubts on how much of an effect this would have on world prices. The buying may have already been done.