Raw sugar from SA made a rare appearance in the cash delivery against an ICE Futures US Contract, according to the Business Report.
A Louis Dreyfus Company BV unit bought about 271,000 tonnes of raw sugar delivered against the ICE contract that expired on Friday, according to ICE data. Most of the sugar came from Central America, Mexico and Brazil, but the main point was the unusual presence of South African sugar.
According to the exchange, it was the first time South African sugar appeared in delivery against an ICE futures US contract. South Africa typically acted as an exporter to Europe. The sale could indicate that the changes in the EU left South Africa “nowhere to go but the board,” Michael McDougall, senior vice-president of sales for ED&F Man Capital Markets, said. The exchange, or “the board,” is seen as a buyer of last resort.
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