NEW YORK: The delivery against the July raw sugar contract on ICE Futures US was the largest on record at about 2.1
NEW YORK: The delivery against the July raw sugar contract on ICE Futures US was the largest on record at about 2.1 million tonnes, exchange data showed on Monday, in line with expectations from traders on Friday.
This 41,488-lot delivery was the largest on record, according to ICE, and worth over $570 million based on Friday's closing price of 12.32 cents per lb. The sugar was due from Brazil, Guatemala, and Thailand.
ED&F Man and Term Commodities, a unit of Louis Dreyfus Company, were both listed as receivers of the sugar in the exchange data.
Alvean and Sucres and Denrees (Sucden) were said by traders on Friday to also be receivers of the sugar. Alvean could not immediately be reached for comment and Sucden declined to comment.
Large physical deliveries are typically seen as bearish signals, indicating both plentiful supplies and sluggish demand. But expectations for reduced output in the coming months out of top producers Brazil and India could help temper the bearish influence of this delivery, dealers said.
Cofco International, the trading arm of Chinese state-owned food group COFCO and Singaporean commodity trader Wilmar were said to be the largest deliverers of the sugar, which one dealer said was a concern in its potential indication of weak Asian demand.