REPORTS

News headlines seem to be taken with stories that would support the sugar bears recently. The slip in the CRB by over 5% since the end of May early June is testing key support areas. Indeed key constituents in the index like Oil are under pressure prompting chart some technicians to suggest lower levels are expected (coupled with market chat of Russia and Saudi expectations for the upcoming OPEC meeting to increase productions levels), Soybeans and Corn both closed poorly yesterday but not so Wheat.

Market focus for the short term will probably turn away from developments in India to weather forecasts in Brazil where drier weather has prevailed across most of the centre south, Sao Paulo and Parana with only light showers recorded over Minas Gerais. The six to ten day forecast predicts lower than normal rainfall for Sao Paulo but above normal rainfall for Parana with the general forecast suggesting the rain levels will be too light to impede the harvest campaign.