Cheap Freight Erodes Thai, Australian Sugar Export Advantage over Brazil
Cheap freight is eroding Thai and Australian sugar exporters' competitive advantage over Brazilian suppliers to Far Eastern markets, traders said on Thursday. Thai raw sugar for March/April shipment was quoted at 25 points ($0.25/lb) over ICE March futures, compared with 10 points over March for Brazilian supplies. Cheap freight costs mean that Brazilian export offers are almost as competitive as Thai offers in China, the world's top sugar buyer, with Brazilian freight to north China at around $14-15 per tonne, against Thai freight at around $9 per tonne. "Cheap freight means that Far Eastern premiums are getting cheaper," a senior European trader said.
Commodities See Biggest Price Jump in 3 Years
Commodities jumped on Friday, headed for their largest weekly gain in more than three years as base metals roared higher after Glencore pledged to slash zinc output and gold hit three-week highs after dovish Federal Reserve minutes. Surging metals offset a choppy oil market. Brent, the global benchmark, slipped on Friday under pressure from bargain hunting at the end of a big weekly increase. Base metals were "explosive" after Glencore's surprise announcement it will cut zinc output by 500,000 tonnes a year, removing 4 percent of global capacity, INTL FCStone analyst Ed Meir said. The news unleashed a wave of short covering across the London Metal Exchange as investors unwound bearish bets on weaker prices and ballooning oversupply as economic growth slows in China…
India Ups Sugar Exports to Iran, Asia; Takes Share from Brazil
Indian mills are exporting more raw sugar to Iran and Asian markets, aided by a production incentives package and recovering world prices, seizing market share from top exporter Brazil. "There is a strong flow of physical trade from India, helped by the rally in world sugar prices, export incentives and rupee clearing," said Jonathan Kingsman, head of agriculture at data provider Platts. Cash-strapped Indian mills, which have struggled to pay cane farmers due to weak global sugar prices, received a boost last month when authorities approved an incentives package amounting to 3,300 rupees per tonne to stimulate export sales from substantial stocks.
