Platts' Brazil CS VHP sugar assessment closed Monday at HNY-77 points, up 3 points on the week.
The slight upward movement was tracked by sellers trying to support offer levels after a deal traded on October 12 at H-70 points.
But the uptrend was capped by moderate rainfall levels in the first half of October that were not enough to disrupt harvesting.
A higher sugar mix at 43% was already expected by the market in the first two weeks of October, making more sugar available in the near-term. In center-south Brazil, sellers were encouraged to reduce prices in anticipation of the good harvest period, and buyers were content to wait for lower levels. The latest uptrend in the NY11 flat price has left the inter-trade market in a sluggish mode. Not even the tight supply and demand scenario for December and Q1 2016 has encouraged buyers to come up to the spot market.
The uptick in the NY11 March 2016 futures contract to 14 cents/lb favors sugar over ethanol production, while the low exchange rate for the Real against the US dollar remain favorable for exports.
If a wet climate doesn't hamper the pace of crops, mills will try to speed up sugar production, even with the 2015/16 crop moving into its last stage, when the low ATR typically increases sugar production costs.
Offers were heard Monday at H-70 points, while a possible buyer was reported at H-85 points.
