Sugar From Central America May Be Delivered to ICE, Brokers Say
Sugar from Brazil, Thailand and Central America may be delivered against March raw-sugar futures traded in New York and expiring at the end of the month, brokers said.
Central American sweetener would cover demand from the U.S., Naim Beydoun, a broker at Swiss Sugar Brokers in Rolle, Switzerland, said in a report e-mailed yesterday. Sugar from Thailand, the world’s second-biggest exporter, would be used to meet sales to the Far East, he said.
As much as 200,000 metric tons of Brazilian sweetener may be delivered, Luiz Carlos dos Santos Jr., head of sugar brokerage and operations at SA Commodities in Santos, Brazil, wrote in a report dated Feb. 17. The country is the world’s biggest producer and exporter.
Deliveries of sugar from Brazil against the expiring ICE Futures U.S. contract may exceed the forecast if the price and the price gap between March and May futures remains at current levels, SA Commodities said.
Raw sugar for March delivery was 0.85 cent a pound more expensive than May-delivery sweetener when trading ended on Feb. 17, data on Bloomberg show. ICE is closed today for the Presidents’ Day holiday.
March raw-sugar futures expire on Feb. 29.
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