Yahoo Finance Alvean and Raizen Take Sugar in Large Exchange Delivery
(Bloomberg) -- Commodities trader Alvean Sugar SL and top Brazilian producer Raizen SA took most of the raw sugar to settle expiring New York futures in the largest delivery for this time of year in years.
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Alvean received the bulk of supplies at 799,729 tons, according to people with knowledge of the matter who asked not to be identified discussing private negotiations. Raizen bought about 186,495 tons, the people said. Louis Dreyfus Co. was also a receiver, taking 94,695 tons, other people familiar said.
Wilmar International Ltd. was the main seller, delivering 674,146 tons, according to the first people. With the addition of some smaller sellers, more than 1.08 million metric tons of raw sugar will be delivered in total, according to estimates from analysts at risk management company StoneX.
The delivery against 21,277 contracts is the largest in the past five years. Volumes were more than double those from the same period last season, though were still bellow a record delivery of more than 2 million tons seen at this time in 2019.
While a large delivery to the exchange can be interpreted as a sign of low demand in physical markets, the list of receivers includes a big producer and a trader backed by Brazilian growers. That could mean they’re expecting either a pop in demand or an upcoming tightening in supply.
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