July raw sugar deliveries has been as enormous as the mother of all deliveries. Very, interestingly the tables seemed to be turned. The traditional big receivers on exchange are seen as deliverers.
Exchange data exhibited that the July sugar contract on ICE Futures was at the highest peak at 41,488 lots on Friday’s closing price which stood at 12.32 cents per lb. The report showed that the sugar stocks were due from Brazil, Thailand and Guatemala.
The trade houses listed in the receivers of the sugar were Sucden, EDF Man, Alvean & LDC. Czarnikow, COFCO, ENERFO, Glencore, Wilmar were amongst the deliverers of the sugar.
The large physical deliveries are conventionally seen as flags of bearish trends stipulating large supplies yet having an atmosphere of flat demand. However, the lower estimated numbers of production may rope in waves to hamper the bearish incline of the delivery.
Significantly the deliverers are Asians and the receivers are Europeans which also notifies the view of the two hemispheres. Eastern hemisphere is where majority of sugar surplus is lying and western seems to be in deficit.
The White sugar delivery is due in the next two weeks and now everyone is eyeing on the same. The lifting pace of this 2.1 mn tonnes of sugar which was got delivered on tape will likely determine the course of the market in the next two months.
