NEW YORK: One of the world's largest sugar refiners has sold just over 200,000 tons of refined sugar through the ICE Futures US exchange in a very rare move that underscored concerns over demand as prices sink, three US traders said on Friday.
Al-Khaleej Sugar Refinery sold the majority of over 300,000 tons against the ICE March white sugar contract, worth about $200 million based on Friday's closing prices, the traders said.
The delivery was fairly large and notable mostly for the participation of Al-Khaleej for what traders said was the first time the refiner has participated in a cash delivery in a decade.
ED&F Man was expected to be the main buyer of the sugar, which would come from Al-Khaleej and a handful of other trade houses selling sugar from Guatemala.
Neither Al-Khaleej or ED&F Man could be reached immediately for comment.
The March white sugar contract on ICE settled down $3.60, or 0.9 percent, at $382.50 per ton in its last day of trade.
The large sale from Al-Khaleej would likely be seen as bearish for prices, a sign of weak consumer demand for the sweetener, the traders said. The exchange is typically seen as the buyer of last resort.
"It means there's not much of a market," said one of the traders.
Last month, Al-Khaleej's head of sugar said high sugar premiums last year had compensated for weak physical demand.
Expectations mounted in recent days that more sugar would be sold in the expiry than previously thought, as spike in the premium of nearby prices brought in more buyers.
The March contract ended at a premium of $4 per ton above the May contract on Friday, down over 70 percent from a January peak of $14.20 per ton.
Al-Khaleej to sell 200,000 tons of refined sugar through ICE Futures
