BP Bunge Bioenergia: High freight prices affecting sugar trade
Aug, 04, 2021 Posted by Ruth HollardWeek 20-2131
The high price of transoceanic freight has led sugar consumers around the world to buy less and instead use up their inventories, causing a temporary oversupply of the sweetener in the Port of Santos (SP), pushing down price differentials.
According to BP Bunge Bioenergia, a sugar and ethanol company owned by BP and Bunge, in July, Brazilian sugar was at times sold at a discount against futures contracts traded in New York, instead of registering the traditional premium about futures, as many importers have stopped importing.
“The fact is that this transoceanic freight situation has caused some stress,” said Geovani Consul, CEO of BP Bunge. “Now it’s coming back, it’s getting better for August,” he added.
See below a history of Brazilian sugar exports since 2018. Data are from DataLiner:
Brazilian Sugar Exports (HS 1701) | Jan 2018 to Jun 2021 | WTMT
Graph source: DataLiner (click here to request a demo)
High rates for transoceanic transport both for ships carrying bulk sugar and grains and for containers used for products such as coffee and cotton have increased costs for companies and are affecting trade.
Analysts say increased online shopping and imbalances in the distribution of containers and ships during the pandemic, as well as rising oil prices, are the main causes of the movement.
Source: Money Times
To read the full original article, visit the link:
https://www.moneytimes.com.br/altos-precos-de-frete-afetam-comercio-de-acucar-diz-bp-bunge/
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