Raw sugar from Brazil, the world’s largest producer, is trading at a bigger discount as offers to sell the sweetener increase, according to SA Commodities.
Raw sugar for loading in October traded yesterday at a discount of 0.77 cent a pound to the price of the March futures contract on the ICE Futures U.S. exchange, the Santos, Brazil-based brokerage and consultancy said in a report e-mailed yesterday. That is 0.07 cent a pound lower than the previous cargo traded on Oct. 5, according to the report.
“It seems that we do have a lot of sellers in the market, which is not the case for buyers,” said Luiz Carlos dos Santos Jr., head of sugar brokerage and operations at the company.
Sellers for October loading were yesterday offering the sweetener at a discount of 0.65 cent a pound to the exchange price, while buyers wanted to receive a discount of 0.8 cents a pound, SA Commodities data showed.
Raw sugar for March delivery fell 0.6 percent to 21.35 cents a pound 5:43 a.m. in New York trading.