The premium buyers are prepared to pay for sugar from top global producer Brazil slid over the past week as higher prices curbed demand, Swiss Sugar Brokers said.
Raw sugar for loading next month at the ports of Paranagua and Santos, the country’s largest, was at a premium of 1.25 cents a pound to the March contract on ICE Futures U.S. in New York, the brokerage said in a report e-mailed yesterday. The premium was 1.35 cent on Oct. 22, it said in a report that day.
“Traders are waiting ‘endlessly’ for the Malaysian, Chinese, Egyptian and Iranian buying,” Naim Beydoun, a broker at the Rolle, Switzerland-based company, said in the report.
Buying from these countries would amount to immediate demand of 2 million tons and is expected to happen at 25 cents a pound, he said. Sugar ended at 26.15 cents a pound last week, bringing the gain for this month to 3.4 percent.
The premium for raw sugar for loading in December at the port of Santos has fallen to 1.3 cents a pound from 1.35 cents a pound on Oct. 22, data from Swiss Sugar Brokers show.
White, or refined, sugar for December delivery declined 0.7 percent to $697.50 a ton by 3:49 p.m. on NYSE Liffe in London. Raw sugar for March delivery fell 0.3 percent to 26.06 cents a pound on ICE Futures U.S. in New York.