Chinese trader COFCO delivers 900,000 tonnes of sugar to ICE exchange



By Marcelo Teixeira

NEW YORK, April 28 (Reuters)Chinese commodity trader COFCO International delivered 900,000 tonnes of raw sugar to the International Exchange (ICE) when the May contract expired, with a very large amount of the product coming from a single company, traders said on Friday. .

The sugar delivered by COFCO is entirely of Brazilian origin and will be made available to companies taking delivery of the product at the country’s ports, most likely the port of Santos, the traders added.

It is estimated that at least 15 Panamax-sized vessels, each with a capacity of 60,000 tons or more, will be needed to transport all the sugar the Chinese company delivers.

COFCO owns a large sugar farm in Brazil, with four mills, and also purchases sugar from other producers in the country for its commercial operations. The company also operates Port Terminal 12A in Santos.

The company did not immediately return a request for comment on the big deal.

Sugar prices have skyrocketed over the past few weeks to reach the highest level in more than 11 years amid a global supply shortage and Brazilian harvest delays.

Total Deliveries at ICE May Contract Expiry SBc1 Friday were seen in 18,494 lots, or about 940,000 tonnes, traders said.

Singaporean trader Wilmar WLIL.SI would be the largest receiver of sugar, with more than 12,000 batches, or 620,000 tons.

ICE will release official delivery data on Monday.

(Reporting by Marcelo Teixeira; Editing by Chris Reese and Jonathan Oatis)

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



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