Dry weather conditions in Brazil and humid weather in India keep contributing the harvesting and refining of sugarcane in these leading sugar-exporting countries. This factor also makes analyst reconsider their forecasts.
However, it seems like the market ignore the fact that sugar refineries are lagging behind seasonal tendencies, which will be hard to make up for in the near future. At the same time, Brazil is still under the risk of getting more rains, which will hinder the quality of sugarcane and will make it more difficult to gather the remaining harvest.
The market of sugar has been seeing a bearish move over the last 18 days, thus making the October sugar futures extremely oversold. This decline has formed conditions for a short-term rally.
The chart below, courtesy of , reflects the current state of affairs in the market of sugar:
