Futures were lower, and prices remain in a short-term trading range. The market is watching Hurricane Irma. Irma appears headed to the southeast US and could hit Sugar production areas in Florida. It is currently a very powerful hurricane and will cause a lot of damage. It has already hurt some areas in the islands. The problems around Houston have improved as the weather has turned drier, and production and refining will be coming online all week. It has been a great recovery considering all of the flooding seen last week, and it could mean that ethanol and bio fuels demand does not increase as much as expected. The market expects firmer prices over time in part due to the moves in Brazil to increase ethanol production through higher gas prices and as the Indian harvest could be delayed due to wet conditions that would delay sugarcane harvesting.
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