Raw sugar delivered against the expiring March futures in New York may be as much as 1 million metric tons, according to ABN Amro Markets U.K. Ltd.
The sugar is likely to come from Brazil, Thailand, Central America and “possibly” India, James Kirkup, a broker at the bank in London, said by e-mail today.
Raw sugar for March delivery was 0.76 cent a pound more expensive than May-delivered sweetener by 6:06 a.m. on ICE Futures U.S. in New York, a so-called backwardation that may signal limited supplies.
The March contract expires today on ICE and the first notice for delivery is tomorrow. Cargill Inc. took delivery of almost 1 million tons of raw sugar after the March 2011 contract expired on ICE.