Weekly World Sugar Update
Before Friday’s rally, the No. 11 market had mostly trended downward over the previous six sessions after posting two-month highs last week. The sustained correction and subsequent rebound served to move futures from the top of their recent trading range to the middle of the 23¢/lb to 25¢/lb range, basis the March contract. The drift downward was consistent with the forecast for a large surplus in 2011/12. Fundamentally, the market continues to watch the progress of the Asian crops (Thailand, India, and China) with European and Russian beet processing either finished or nearly so. The strong possibility of sizable Indian exports still exists and casts something of a pall over any bullish sentiment.