Vitol Group, a closely held commodity trader, is taking delivery of about 144,000 metric tons of raw sugar after the expiry of the July contract on ICE Futures U.S., according to two people with direct knowledge of the matter.
ICE confirmed the amount, the smallest for the July contract since 2006, exchange data show. Geneva-based Vitol has 2,835 futures contracts, each representing 112,000 pounds (50.8 tons), said the people, asking not to be identified because they aren’t authorized to talk to the media. Andrea Schlaepfer, a spokeswoman for the company in London, declined to comment.
Sucden Americas Corp., the Miami-based unit of Sucres et Denrees SA in Paris, said in an e-mail that it is delivering against 984 contracts. ICE said that the total sales will come from ports in Argentina, El Salvador and Mexico. The most-active futures contract fell as much as 1 percent today to the lowest since June 21. Through June 28, the price dropped 18 percent in the past 12 months, partly because of a bumper crop in Brazil, the world’s biggest producer.
“In a mature bear trend, the contract typically becomes a residual market for unwanted sugar,” James Cassidy, the head of the sugar trading desk at Newedge Group in New York, said in a telephone interview.
Raw-sugar futures for October delivery fell 0.8 percent to 16.79 cents a pound at 12:43 p.m. on ICE in New York. Earlier, the most-active contract touched 16.75 cents. The July contract expired on June 28 at 16.38 cents.
Bunge Ltd., based in White Plains, New York, delivered 197 contracts, according to two people familiar with the transactions, who also asked not to be named. The company doesn’t comment on commercial contracts, Susan Burns, a spokeswoman, said in an e-mail.
Jefferies Bache LLC was the broking company making delivery on 2,638 contracts, while BNP Paribas Prime Brokerage Inc. delivered 197 contracts, ICE data showed. ABN Amro Clearing Chicago LLC was the receiver for the full amount.
A year earlier, the ICE delivery was 21,737 contracts, or more than 1 million tons.