Buyers of raw sugar from Brazil, the world’s largest producer, are paying a premium to futures prices for sweetener from the next crop as nearer-dated cargoes trade at discounts, according to Swiss Sugar Brokers.
Raw sugar from the 2013-14 crop for loading in May at the port of Santos was 0.08 cent a pound above prices on ICE Futures U.S., the broker said in a report e-mailed today. Sweetener for March loading traded at a premium of 0.07 cent. The commodity was at discounts of 0.09 cent for February and 0.75 cent to 0.85 cent for next month, data from the broker showed.
“The nearby remains under pressure,” Naim Beydoun, a broker at Swiss Sugar Brokers in Rolle, Switzerland, wrote in the report. In comparison, “one trade house” was seen as having taken a “bullish stance” for forward months, it showed.
About 400,000 metric tons of Brazilian sugar changed hands last week even without demand from importing countries, according to Beydoun. The nation’s next crop starts in April.
Raw sugar for March delivery fell 0.2 percent to 19.31 cents a pound by 7:14 a.m. on ICE in New York, extending last week’s 4.3 percent drop.
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