May 1, 2018 / 1:45 PM / 23 days ago

UPDATE 3-Wilmar seen as major seller in large May raw sugar delivery

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    By Marcy Nicholson
    NEW YORK, May 1 (Reuters) - Three trade houses have scooped
up over 1 million tonnes of Brazilian raw sugar against the May
futures contract that expired on Monday, with Wilmar
International seen selling more than half of it, according to
ICE Futures U.S. data and traders. 
    Many market participants view this as bearish, pointing to
weak demand amid abundant global supplies, with traders saying
Wilmar became a major seller after being a large buyer
of raw sugar deliveries against ICE contracts in recent years. 
    Wilmar, a Singapore-based trader, did not respond to a
request for confirmation. 
    The ICE May raw sugar delivery totaled 21,021 lots, about
1.07 million tonnes, down from 29,947 lots a year prior, ICE
Futures U.S. data showed on Tuesday, confirming a Reuters
report. Of this, traders said Wilmar sold 12,909
lots.
    July raw sugar futures pared losses after falling by
as much as 2 percent to 11.52 cents per lb on Tuesday morning.
    "The guess would be that Asia is swimming in sugar right
now, what with India and Thailand producing a large amount,"
said Michael McDougall, senior vice-president of sales for ED&F
Man Capital Markets.
    One dealer noted Wilmar delivering against the May contract
is a "pretty significant event," as it signals potentially
weaker demand from refineries in Algeria, Morocco, and
Indonesia.
   "It's maybe a sign that demand going forward is not as robust
... Usually Wilmar would have homes for that sugar in Algeria
and Morocco and Indonesia," the dealer said.
    Forecasts for a large global surplus have pressured prices,
with the spot raw sugar futures contract falling to a
2-1/2-year low at 10.69 cents per lb last week. 
    China's Cofco International            was also a seller in
this delivery, of 6,463 lots, traders said. A Cofco spokesman
declined to comment.
    "As the owner of a couple of major refineries in China, if
Cofco themselves are throwing in the towel and delivering, then
it gives you signals about the demand for raw sugar from the
refineries there," the dealer said.
    Trade house Louis Dreyfus Co            , bought more than
half the delivery at 11,998 lots, traders said. A company
spokeswoman declined to comment. 
    An Alvean spokesman confirmed the company, a joint venture
of Cargill Inc           and Brazilian sugarcane cooperative
Copersucar, purchased 5,925 lots of the delivery.
    Trade house Sucres & Denrees (Sucden) was seen buying 3,098
lots, traders said. The company did not respond to a request to
comment.

 DELIVERER                      GROWTH   PORT        CONTRACTS
 BNP Paribas Securities Corp.   Brazil   Paranagua        1523
 Macquarie Futures USA, Inc.    Brazil   Santos           6589
 SG Americas Securities, LLC    Brazil   Paranagua        2953
 SG Americas Securities, LLC    Brazil   Santos           9956
 TOTAL                                                   21021
                                                              
 RECEIVER                                                     
 ADM Investor Services          Brazil   Paranagua         660
 ADM Investor Services          Brazil   Santos           2438
 Marex North America, LLC       Brazil   Paranagua        1262
 Marex North America, LLC       Brazil   Santos           4663
 Term Commodities               Brazil   Paranagua        2554
 Term Commodities               Brazil   Santos           9444
 TOTAL                                                   21021
 
 (Reporting by Marcy Nicholson, additional reporting by Ana
Ionova in London
Editing by Chizu Nomiyama and Susan Thomas)
  
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