NEW YORK, July 1 (Reuters) -Deliveries of raw sugar on the expiry of the July contract on ICE exchange totaled 21,277 contracts, or nearly 1.1 million metric tons, according to an official notice released by the exchange on Monday.
The notice confirms preliminary information provided by traders on Friday. ICE said that nearly all the sugar will come from Brazil, with the Santos port holding the largest volume of around 735,000 tons while the Paranagua port will load around 340,000 tons. Argentina's Rosario port will load 7,500 tons.
It is a relatively large delivery volume, the largest for the July contract since 2019, according to data compiled by Reuters. Large deliveries are usually seen as bearish, meaning there were not better deals for traders in the physical market. But that indication is far from certain.
One U.S.-based broker, for example, noted the fact that Alvean and RaizenRAIZ4.SA, which are sugar producers or linked to producers, were the largest receivers of the sugar.
"That would seem to point to good demand in the market," he said.
Green Pool Commodities Specialists said in a note that raw sugar from Centre-South Brazil is currently quoted at a high premium to the futures, while it would normally be at a discount at this time of the year when harvest is in full swing.
"Perhaps a weather risk premium is creeping back into the market, or possibly, the market is starting to wake to the lack of rainfall," the note said.
Many areas in Central Brazil have not received rains for 60 days, which could end the sugar harvest earlier this year.
The delivery will boost movement at Brazilian ports, which have been operating at near capacity for the last two years as the country boosts exports of agricultural products.
