In the physical world, demand seems to continue to pick up slightly in the last couple of days,
as in the last week in Brazil sales in the spot market paid 11.82% more than international trades according to data from Cepea.
Demand in the spot market has increased over the last week or so, while the export market is still rather quiet.
The weather forecast remains rather good for the crush in the nearby future,
while a continuous lack of rain might negatively affect cane growing conditions in the tail-end of the crop.
In India, the monsoon is slowly progressing,
and the progress of the rains is expected to be slow for the next two days as well.
Regarding the El Niño weather pattern, ENSO released its latest update today.
Despite recent observations and some easing in the model outlooks,
climate models surveyed by ENSO still indicate El Niño is likely to develop,
indicating at least a 70% chance of El Niño developing in 2014.
From a technical point of view, todays quiet session didn’t change too much to the overall picture. After two days of settling higher, the market retraced part of these gains, evidencing the lack of trend and/or momentum in the market.