The Brazilian cash premiums to ICE July NY11 sugar futures contract have risen by four points since June 15 due to logistical constraints related to export of a potentially high volume of raw sugar from Santos port, market sources said. Despite coronavirus pandemic’s negative impact on the global sugar demand, Brazil is expected to export 10 million mt more sugar during Center-South 2020-21 crop year – which started in April 2020 – compared to the year-ago period. This is expected to exert strong pressure on its logistic capacity.
On June 18 Brazilian raw sugar FOB Santos was assessed for July shipment at 16 points premium to the July (N) future contract, up 3 points on the day. Previously, the assessment was unchanged on June 17 even though two trading houses were reported to have sold July shipment period FOB Santos cargoes at N plus 16 points. However, these trades were not validated by multiple sources and no bid was heard in the market…
