Today’s whippy session certainly had a few different elements at work. First off, and most widely anticipated by the market, was the Unica report for the second half of July. It showed a cane crush of 35.9 million mt, a sugar production of 2.236 million mt, an ATR of 141.2 kg/mt, and a sugar mix of 46.2%. These numbers were all to the low end of market expectations. But the market may have been inspired to buy ahead of the report as the second half of July was rainier and had a few days’ worth of stoppages. But importantly, the report also showed that sugar production is currently up 9% versus this time last year to 15.130 million mt. This likely helped the market to perceive the report as more bearish. This more bearish perception may have weighed particularly on the October/March, as the report means more sugar present towards the front of the board. However, it also seems that, akin to the last time October/March reached similar levels to yesterday’s close, short-covering in the spread over-extended itself, and the market reacted by selling strength. If the latter is the case, the spread may be in for a further sell-off tomorrow. Are we simply seeing a repeat of the front spread’s earlier recovery and failure from mid-July? Besides this, the sugar board may have also felt some macro selling pressure from the rest of the board, as corn, soy beans and coffee all had weak sessions.