REPORTS

Fresh fundamental news is scarce , although some encouragement to the bulls might be provided should China announce acceptance of imports from India of raws of up to 1.5 MMT. These imports will still be subject to a 50% duty but the high domestic price in China still make them viable. The move is as a result of negotiations a few weeks ago following the visit to China of India’s Prime Minister to address the high trade imbalance between the two nations. China is expected to give the green light to these imports by the end of the month and the sugar is expected to move by mid-October. The prospect of these raws being exported will at least help in providing a floor to the market and strengthen Oct/March spreads as this demand had not been expected. So far the market has not reacted, possibly awaiting confirmation of the deal by the Chinese authorities.