BRAZIL: Sugar ships waiting to load fall 25% in a week
http://www.sugaronline.com/website_contents/view/1207016January 10, 2013 at 12:34 PM
The amount of sugar awaiting loading at ports in Brazil declined 25% over the past week, Williams Servicos Maritimos Ltda. said, as demand slowed, according to Bloomberg.
About 918,433 metric tonnes of the sweetener were waiting to be loaded onto ships at Recife, Maceio, Paranagua and Santos, the country's biggest port, figures from the Recife, Brazil-based shipping agency showed. That compared with 1.22 million tonnes a week earlier.
Brazil's center south, the main growing region, will produce a record 34.05 million tonnes of sugar in the 2012/13 season, up from a previous forecast of 32.7 million tonnes, industry group UNICA said on Dec. 20. There are a lot of offers to sell raw sugar in Brazil and not enough demand, Luiz Carlos dos Santos Jr., head of sugar brokerage and operations at SA Commodities in Santos, said in a report e-mailed on Jan. 8.
"Center south Brazil's 34 million tonnes-plus production for 2012/13 exceeded all expectations, and with good progress on Northern Hemisphere beet and importantly cane crops, it's hard not to be bearish," Tom McNeill, a director at Brisbane, Australia-based researcher Green Pool Commodity Specialists Pty., said in a report e-mailed Wednesday.
Brazilian sugar from the center south for immediate delivery is trading at a discount of 0.3 cent to 0.4 cent a pound to the price on the ICE Futures U.S. exchange, according to Green Pool. Sugar fell 16% last year as global supplies were forecast to outpace demand for a third year, according to the International Sugar Organization in London.
"Center south Brazil raws are facing an uphill battle," McNeill said, referring to the discounts against the exchange.
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