Buyers of raw sugar from Brazil, the world’s largest producer, are getting a discount for the sweetener loading in August at ports in the country’s main growing region, according to Swiss Sugar Brokers.
Sugar for loading at ports in the center south in August is at a discount of 0.2 cent a pound to the price of the July contract on the ICE Futures U.S. exchange in New York, Naim Beydoun, a broker at the Rolle, Switzerland-based company said by phone today. On June 10, the sweetener in the physical market was at the same price as on the exchange, he said in a report that day.
“We will have plenty of sugar in August,” Beydoun said. “The rains have been delaying harvesting, crushing and shipments but, on one hand, they will be more beneficial later for the cane and less for the sucrose.”
Buyers wanting to ship sugar in July have to pay a premium of 0.3 cent a pound to the exchange price because of harvest and export delays, he said.
Raw sugar for October delivery was 0.2 percent lower at 19.64 cents a pound by 9:26 a.m. in New York.