Chinese trader COFCO delivers 900,000 tons of sugar to the ICE exchange

Chinese commodities trader COFCO International shipped 900,000 tonnes of raw sugar to the International Stock Exchange (ICE) at the end of its May contract, a very large quantity of product from a single company, traders said on Friday.

The sugar supplied by COFCO is exclusively of Brazilian origin and will be made available to the companies that will receive the product in the country’s ports, most likely in the port of Santos, the traders added.

It is estimated that at least 15 Panamax-sized ships, each with a capacity of 60,000 tons or more, will be needed to accommodate all the sugar that the Chinese company will supply.

COFCO has a large sugar operation in Brazil with four mills and also buys sugar from other producers in the country for its commercial operations. The company also operates Port Terminal 12A in Santos.

The company did not immediately respond to a request for comment on the major operation.

Sugar prices have skyrocketed in recent weeks, hitting their highest level in more than 11 years amid global supply shortages and delays in Brazil’s harvest.

Total shipments following the expiration of ICE’s May SBc1 contract on Friday totaled 18,494 lots, or about 940,000 tonnes, traders said.

The trader Wilmar WLIL.SI from Singapore is said to have been the largest buyer of the sugar with more than 12,000 lots or 620,000 tons.

ICE will release official data on shipments on Monday.

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