A Glut of sugar from India, the second-largest producer, has hit the London exchange as traders sold the sweetener to settle the expiration of December futures, according to people involved in the process.
ED&F Man Holdings Ltd. took delivery of about 350,000 metric tons of white sugar, with Singapore-based trader Wilmar International Ltd. selling the majority, said the people, who asked not to be identified because the deals are private. Some of the sugar — which was also delivered by Tereos and at least two more companies — will come from India, the people said.
Sugar futures traded in New York slumped 17 per cent this year as bumper crops meant another year of excess supplies. Refined sugar in London slid 13 per cent. December futures expired at $328.20 a ton on ICE Futures Europe.
India produced a record 32.4 million tons of sugar last season, helping send the global surplus to an all-time high. While output in the season that started Oct. 1 will probably fall amid lower yields and an infestation of the white grub pest, it will still be one of the biggest harvests on record.
Sugar futures traded in New York slumped 17 per cent this year as bumper crops meant another year of excess supplies. Refined sugar in London slid 13 per cent. December futures expired at $328.20 a ton on ICE Futures Europe
Millers in India struck deals to export 835,000 tons of sugar this season, more than the total exports from the previous year, Praful Vithalani, owner of a major trader and chairman of the All India Sugar Trade Association, said earlier this month. Shipments this season could climb to as high as 5 million tons.
Crude oil could drop below $50, warn analysts
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Frontpage February 6, 2020