Sugar traders in top producer Brazil want to ship from the country’s biggest port of Santos as second-ranking Parangua is contending with the largest delivery of the sweetener since 2009, according to Kingsman SA.
Copersucar SA, Cargill Inc. and ED&F Man Holdings Ltd. took delivery of about 1.1. million metric tons of raw sugar after the expiry of the July contract on ICE Futures U.S. in New York. Most of the sweetener will be delivered at Paranagua, according to ICE data. Vessels at that port were waiting to load 982,132 tons of sugar as of July 6, according to Unimar Agenciamentos Maritimos Ltda., a shipping agency in Santos. That compares with 404,850 tons on June 29, prior to the delivery, the data showed.
“The main receiver has already nominated over 600,000 tons,” Lausanne, Switzerland-based broker and researcher Kingsman said in a report e-mailed today, commenting on the scheduling of vessels to ship the sugar delivered on ICE. “Traders are keen to swap Paranagua for Santos to be able to ship in bigger vessels and obtain earlier loading dates.”
Ships of the same size loading at Santos can take more cargo than in Paranagua because of the relative draft limits, according to Stephen Baldey, London-based director of O.P. Secretan LLP, a specialist in sugar shipbroking. Draft is the depth at which a ship can sit in the water.
Vessels at the port of Santos were waiting to load 1.98 million metric tons of sugar as of July 6, according to Unimar data. That is less than the 2.28 million tons on June 29, prior to the New York futures expiry, the data showed.
Traders also favor Santos because the port has more sugar terminals and is able to load more per day, Nicolle de Castro, a commercial assistant at Santos, Brazil-based consultancy SA Commodities, said by phone today. The port of Santos can load as much as 185,800 tons of raw sugar a day, while Paranagua’s capacity is limited at 61,000 tons a day, she said.
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