Louis Dreyfus unit sole receiver of ICE October delivery
Published: 10/03/2018, 6:40:59 AM
A Louis Dreyfus Company BV unit was the sole buyer of about 271,000 tonnes of raw sugar delivered against the ICE contract that expired on Friday, data showed on Monday, marking the smallest volume sold against an October contract since 2011, according to Reuters.
The origins of the relatively small volume included Brazil, Central America, Mexico and South Africa, and the sale was perhaps most notable for the presence of South African sugar. That was the first time sugar from the African nation was delivered against the contract since at least 2004, according to the exchange.
A spokeswoman for Louis Dreyfus did not respond immediately to A request for comment on its plans for the sugar.
Traders said it was the first time in at least two decades and was the result of changes in European sugar policy that caused the South African sugar to need new destinations. The global benchmark futures contract is often seen as the buyer of last resort.
The delivery totaling 5,337 lots of sugar was worth about US$62 million based on Friday's settlement price of 10.42 cents per lb.
The benchmark March ICE raw sugar contract was up 0.07 cent, or 0.63%, at 11.27 cents per lb by 10:14 a.m. EDT.