Yahoo Finance UPDATE 1-ICE May raw sugar delivery hits 1.67 mln tns, 4th largest on record
(Includes comments from traders, context from paragraph 4 onwards)
By Marcelo Teixeira
NEW YORK, April 30 (Reuters) - Deliveries of raw sugar on the expiry of the May contract on ICE exchange were seen at 32,914 lots, or around 1.67 million metric tons, the fourth largest on record, according to preliminary information from three sugar traders on Tuesday.
Singapore-based commodities trader Wilmar International was said to be the largest deliverer of the sugar with 29,727 lots, or around 1.51 million tons. Commodities trader Louis Dreyfus was said to be the main receiver with 19,127 lots, or around 971,000 tons, the traders said.
ICE will release official data on the delivery on Wednesday.
A large delivery is usually seen in the market as bearish for sugar prices, since it might indicate there are no better deals for that sugar in the physical market.
One of the traders, however, noted the fact that two big sugar producers appeared to be among the receivers.
Brazil's Raizen, the world's largest cane sugar producer, was said to be the second largest receiver after Louis Dreyfus with 10,979 lots, or around 557,000 tons. Alvean, the world's largest sugar trader, controlled by Brazilian sugar producer Copersucar, was also seen receiving sugar.
"Raizen and Alvean make the market look undersupplied. Two producers buying sugar at the start of the crop (in Brazil)," said the U.S.-based trader.
A second trader said it was difficult to read Wilmar's move: a large sugar trader delivering a very large amount to the exchange.
"You never know what they did in the physical markets," he said, suggesting that the company might have sourced that sugar at prices that give it a profit even when delivering.
The delivery will surely be a talking point next week when sugar traders around the world come to New York for a week of conferences and meetings that culminate in the annual Sugar Dinner. (Reporting by Marcelo Teixeira; Editing by Chris Reese and Jonathan Oatis)
