The premium for purchasing raw sugar in Brazil skyrocketed 37 percent in 96 hours, according to information provided by a sugar brokerage.
Bloomberg reports raw sugar for shipment in August from Santos, the largest port in Brazil, is selling from 1 to 1.3 cents per pound more than the price listed for October contracts, according to a Sunday report filed by Swiss Sugar Brokers.
"The cash premiums keep holding firm and trading even higher in some cases," states the report by broker Naim Beydoun of the Switzerland-based company.
At 2 p.m. on Monday, sugar futures dropped 1.91 percent, a .006 cent slip to .3074 cents per pound.
During the past month of trading in New York, the soft commodity has increased 21 percent amid preoccupations that Brazil's output will be smaller than originally projected. Premiums for crystal sugar, which represents 68 percent of domestic sales in Brazil, also are driving higher, the Swiss brokerage said.
Reuters reports raw sugar futures slipped in price on ICE after having been driven higher by supply reductions in Brazil.
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