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By Chris Prentice
NEW YORK, Oct 1 (Reuters) - Bunge Ltd has bought 10,405 lots, or about 528,600 tonnes, of raw sugar against the October contract on ICE Futures U.S. that expired on Tuesday, in line with expectations, according to exchange data and trade sources.
BNP Paribas Prime Brokerage Inc was the receiver of the 10,405 lots of sugar, ICE data showed on Wednesday. The sugar was worth $180 million, based on Tuesday’s closing price, and traders said BNP was acting on behalf of Bunge. A Bunge spokeswoman declined to comment on Tuesday.
The data, showing the smallest delivery against an ICE October raw sugar futures contract since 2011, capped two weeks of wild price gyrations triggered by talk of large sales from Thailand, the world’s No 2 exporter, at big discounts.
Traders estimated that some 500,000 tonnes of Thai sugar had been sold in the cash market ahead of the ICE delivery, which included another 120,600 tonnes from Thailand.
Sugar from Brazil, the world’s largest producer and exporter, would account for about 281,000 tonnes of the delivery. The rest will come would come from El Salvador, Costa Rica, Guatemala, Honduras, Nicaragua and Peru.
Worries over large, low-quality Thai inventories pushed the discount of spot prices to the second-month SB-1=R to 2.64 cents a lb, the biggest in at least nine years, in mid-September, according to Reuters data.
That spread sharply narrowed as spot prices soared 16 percent from a 4-1/2-year low of 13.32 cents a lb struck on Sept. 17 ahead of Tuesday’s expiry.
The March contract, which became the spot on Wednesday, was down 0.35 cent, or 2.1 percent, at 16.10 cents a lb by 11:30 a.m. EDT (1530 GMT).
“The response already happened, the dust has cleared, the delivery is over, and the marketplace is looking for a new story in sugar without seeing one yet,” said James Cassidy, senior director at Newedge USA in New York.
Cassidy said it was unclear how much of the large amount of sugar scooped up in the delivery was booked to refiners. (Editing by Bernadette Baum and Lisa Von Ahn)