Feb. 13 (Bloomberg) -- The premium for white sugar over the raw sweetener rose to the highest this year on speculation supplies for delivery into the March futures are limited.
White sugar for March delivery was $113 a metric ton more than raw sugar for delivery the same month at 11:55 a.m. in London, data on Bloomberg show. That’s up 28 percent this year. The March white sugar contract on NYSE Liffe expires tomorrow.
“With major white sugar exporters like the European Union and India not being able to deliver against Liffe, quantities deliverable against March expiry in London are rather limited,” Fabienne Pointier, an analyst at Kingsman SA, said in an e-mail today. “This could help the London futures to firm up before expiry, pushing the white premium up.”
Millers in Thailand, the second-biggest shipper, have been focusing on producing more raw sugar at the expense of refined sugar, Peter de Klerk, an analyst at C. Czarnikow Sugar Futures Ltd. in London, said on Feb. 1.
--Editors: Claudia Carpenter, Dan Weeks
To contact the reporter on this story: Isis Almeida in London at Ialmeida3@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at Ccarpenter2@bloomberg.net.