But the market might have stalled there if not for the CONAB report released in the early afternoon.
The Brazilian government agency reduced their output from 612.9mmt of cane crushed to 599.6mmt, and also reduced sugar production to 34.6mmt – still above 34.4mmt.
With the market trading numbers below this in the wake of the drought, this was taken as a very bearish headline for the market.
As may be evident from the wide range we traded today in October– 60 points – and the smallish volume, another important element of today’s session was that bids and offers remained very thin in the depth all through the market.
Here near the lows and as we approach 16.00, the bids do pick up, but this certainly contributed to the ease the October had moving in such a wide range during the day.
Besides this, macro factors are still having a likely impact on our board, as the Brazilian real weakened nearly 1% today and coffee saw massive losses of over 3%.