The premium buyers are willing to pay for white, or refined sugar from Brazil fell in the past week as sales increased before extra exports from India and the European Union, according to Swiss Sugar Brokers.
White sugar in containers from the South American country was at $60 a metric ton above the March contract on the NYSE Liffe exchange as of Dec. 3, down from $75 a ton a week earlier, data from the brokerage show. White sugar in bulk was at a premium of $45 a ton, down from $65, it said.
The EU approved additional exports of 700,000 tons of sugar in Nov. 24, according to the European Commission, the bloc’s regulatory arm. India, the world’s second-largest producer and biggest consumer, allowed 1 million tons of exports on Nov. 22, Vilasrao Deshmukh, minister for science and technology, said in New Delhi that day.
The premium on Brazilian white sugar has started “waning ahead of EU non-quota exports,” Naim Beydoun, a broker at the Rolle, Switzerland-based company said in a report dated Dec. 3. There is a “race” to get sugar shipped before the Indian exports start, he said.
White, or refined, sugar for March delivery advanced 1.6 percent to $623.20 a ton by 1:50 p.m. on NYSE Liffe in London. Brazil is the biggest producer of sugar.
To contact the reporter on this story: Isis Almeida in London at Ialmeida3@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at Ccarpenter2@bloomberg.net.