ICE March raw sugar delivery is largest ever for the contract (updated)

Wilmar International

28/02/2025 20:41

Includes comment from broker, context

By Marcelo Teixeira

NEW YORK, Feb 28 (Reuters) - Deliveries of raw sugar on the expiry of the March contract SBH5 on ICE exchange were seen at 34,385 lots, or 1.74 million metric tons, the largest ever for that contract, according to preliminary information from two sugar traders on Friday.

According to the two sources, Singapore-based commodities trader Wilmar International WLIL.SI was the largest receiver of the sugar with 23,073 lots, or around 1.17 million tons, while trader Louis Dreyfus was the largest deliverer with 9,599 lots (487,656 tons).

ICE will release official data on the delivery on Monday.

The previous largest delivery for the March contract happened in 2022 with 26,350 lots, according to ICE data compiled by Reuters. The largest delivery for any contract was for the October position in 2023 with 56,470 lots.

    Large deliveries are usually seen as bearish by traders and analysts. They tend to indicate that market players could not find better deals for that sugar in the physical market, opting instead to deliver the product at the exchange.

    "Something like this suggests there is not enough demand (in the physical market)," said a U.S.-based broker.

 (Reporting by Marcelo Teixeira in New York; Editing by Nia Williams)

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