Sugar Ships Queuing in Brazil Signal Bounce in Commodity Demand
- Vessels set for Iraq, Bangladesh, China, Morocco, Nigeria
- Delivery on May futures surged to record 2.26 million tons
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In Brazil, the world’s top sugar producer, the queue for ships to export the commodity is lengthening in a bullish sign that the biggest supplies ever linked to the expiration of a futures contract are bound for consumers around the world.
Through Monday, the queue of vessels loading or expected to take the raw material at Santos, Brazil’s biggest port, increased 50% since the expiration of the May raw-sugar contract on ICE Futures U.S. on April 30, according to data from shipping agency Williams. The number of ships climbed to 35 for handling 1.6 million metric tons of sugar to countries including Iraq, Bangladesh, Yemen, Morocco, China and Nigeria.