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Brazilian Sugar at Ports Drops 10% in a Week on Dryness

The amount of sugar waiting to be loaded at the main ports in Brazil, the largest producer, dropped 10 percent in the past week as dry weather helped loading, according to agency Williams Servicos Maritimos Ltda.

About 1.91 million metric tons of sugar were ready for loading yesterday at the ports of Paranagua, Vitoria and Santos, the country’s biggest, data from the Recife, Brazil-based shipping agency e-mailed yesterday showed. That compares with about 2.14 million tons a week earlier.

Dry weather in the south and center south regions for three consecutive weeks kept ports “working on a normal basis without big queues of vessels causing delays,” Luiz Carlos dos Santos Jr., head of sugar brokerage operations at SA Commodities in Santos, said in a report e-mailed yesterday.

Brazil’s sugar-cane harvest will be helped by dry weather this week in producing areas, forecaster Somar Meteorologia said in a report e-mailed Aug. 27. Dryness helped boost processing by 14 percent to 44.2 million tons in the first half of August, industry group Unica said.

Some 99,712 tons of sugar were scheduled to be shipped to Malaysia and 94,661 tons to China, the Williams Brasil data showed. Chinese buyers, who sold back some cargoes they had bought, were looking to purchase again as prices fell, according to Michael McDougall, head of the Brazil desk at Newedge Group in New York.

“Most of the market was not expecting China to come back in after their massive buying two months ago and then subsequent partial washout,” McDougall said in a report yesterday.

China, the world’s second-biggest sugar consumer after India, diverted about 370,000 tons of planned imports to other destinations, researcher Green Pool Commodity Specialists Pty Ltd. estimated on Aug. 20.

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