New York — The front contract October (V) of the ICE NY11 sugar futures contract left the board on Sept 30 with the preliminary delivered volume at 2.62 million mt, the highest historical volume for the V contract, according to sources.
Of the total volume delivered, 4,000 mt will be available at Veracruz port in Mexico, 4,521 mt in Argentina and the balance of nearly 2.6 million mt in Brazil, according to market participants.
Having Brazil as the primary sugar source was not a surprise for most of trading houses, as the country is increasing the sugar production in roughly 10 million mt in the CS crop 2020-21.
While a record-high volume could suggest a bearish sugar market, as the best buyer’s choice was the exchange, the strength October/March (V/H) spread points to the opposite scenario. Read more…..
Chart of the Day
Brazil: Leading Producer and Exporter of Sugar and Ethanol.