The amount of sugar waiting to be loaded at the main ports in Brazil, the world’s largest producer, climbed 37 percent over the past week after rain disrupted deliveries.
The total waiting to be loaded was almost 2.2 million metric tons of sugar yesterday, according to shipping agency Williams Servicos Maritimos Ltda. That compares with 1.6 million tons a week earlier.
Wet weather will increase waiting times as ports are unable to load sugar when it’s raining, according to consultancy SA Commodities in Santos. Rains in sugar producing areas this week will also disrupt harvesting at least until tomorrow, according to weather forecaster Somar Meteorologia.
About 20 percent, or 430,250 tons, of all the sugar waiting at ports in Brazil will be sent to China, data from Williams Brasil show. China is set to import 3.1 million tons of sugar in the 2011-12 season that started in October, up 1 million tons from a year earlier, the International Sugar Organization in London estimated last month.
Brazil is starting to supply more sugar to the Far East than Thailand, according to Swiss Sugar Brokers. That’s helping support a premium of raw sugar from Brazil, it said The two nations are the largest global exporters of the sweetener, according to the U.S. Department of Agriculture.
Raw sugar for June loading at Santos was 0.15 cent to 0.2 cent above the ICE Futures U.S. July contract on June 3, Swiss Sugar said. That compares with a premium of 0.12 cent on May 27. In Thailand, raw sugar for June loading was at a premium of 1.8 cents to 2.5 cents on June 3, according to the broker.
Raw sugar for July delivery climbed 2.1 percent to 20.32 cents a pound by 10:24 a.m. in London on ICE.