Central American prices still low
Published: 07/02/2009, 9:44:09 AM
Physical trading failed to take advantage of higher prices this week in the cash sugar markets of Mexico, Colombia and Central America, as the 2008/09 harvest is reported sold, according to Dow Jones.
Offers for sugar from the next 2009/10 harvest were reported in a number of countries in Central America, with the region's largest exporter, Guatemala, seen most aggressively pursuing the current strong futures prices.
"We are seeing offers for 2009/10 crop, especially from the mills and trade in Guatemala, but at this time, it's just way too early for anyone to start buying next year's crop; it's too risky," said one Central American physicals trader.
Cutting and processing of the 2008/09 crop is being wrapped up across the region, and harvesting of the 2009/10 crop won't start until October.
Traders said they don't expect any significant activity in new crop buying until late August, when the region passes the period between crops and mills start to wrap up repairs and maintenance needed before the onset of a new harvest.
Cash differentials for bids and offers from most origins in the region were quoted at levels around flat to the New York raw sugar market amid anticipation that any unsold sugar from the current harvest will be sold as certified stocks to the exchange warehouses.