China ships 750,000 t of sugar to Brazil, the highest imported volume of the year

Chinese buyers are currently loading dozens of ships with around 750,000 tonnes of sugar at Brazilian ports, the first major import movement from the Asian country in 2023, according to shipment data compiled by Reuters.

China is traditionally the world’s largest importer of sugar. Its movements in the market tend to influence benchmark prices for raw sugar in New York.

The country has been very quiet in the import market in 2023. Data provided by the shipping agency Williams showed that China only loaded 170 thousand tons of sugar in Brazil – the world’s largest exporter – in the first half, compared to 1.35 million tons in the same period last year.

Commodity analysts at Green Pool said in a report earlier this month that China’s sugar stocks were low after its long absence from the import market.

According to shipping data, state-owned trading company Cofco International is doing most of the export business, having named seven ships to load sugar at Brazilian ports, while Singapore trading company, Wilmar, has named six ships.

Among the other trading companies that carry sugar to China in Brazil are Alvean, Sucden and Enerfo.

Independent sugar analyst Claudiu Covrig estimates that Chinese buyers closed on an even larger volume of imports in total, mainly from Brazil, as the country is usually the only major exporter in the market in the second half.

He estimates that, in all, the business adds up to 3 million tons, with shipments distributed from now until December.

Chinese buyers reportedly closed most of the deals when there was a bearish correction in the market last month.

Sugar prices fell to a three-month low in late June after hitting an 11-year high in late April. Covrig said no other deals have been reported recently.

Brazil is expected to have a near record sugar crop in 2023/24 as the weather has been positive.

Source: Notícias Agrícolas

To read the original article, visit: https://www.noticiasagricolas.com.br/noticias/sucroenergetico/355505-china-embarca-750-mil-t-de-acucar-no-brasil-maior-volume-importado-do-ano.html

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