The Platts EU 45 sugar FOB containers assessment was assessed unchanged week on week at a premium of $33/mt to the March (H) White Sugar Futures (London 5) contract Monday, as traders continue to wait for final crop production figures.
A lack of clarity over final sugar production figures is expected to delay exports out of the EU to early next year, sources said. Platts heard as late as March being mentioned; but traders have now said this was a slight exaggeration.
One trader expects 75% or just under 490,000 mt of the first tranche issued by the EC in the last two weeks to have been shipped by the end of Q4, or the start of Q1 2016 at the latest, but he warned of monitoring market fundamentals through to the end of this month.
In the Netherlands, for example, improved weather conditions in October to date have boosted the sugar harvest late on, with beet yields now estimated at 16.3% for the week ending October 10, compared to 15.8% estimated for the week to October 3, and 15.4% on September 26.
There was some uncertainty which countries would and would not be exporting this year. Platts heard last week that Denmark, Germany, France, Hungary, the Netherlands, Austria and Poland are all confirmed exporters.
One other recent development was a market rumor that the annual Algerian tender for 150,000 mt of sugar could be delayed, or even canceled, this year.
This tender typically takes place at the end of November, with the EU a favorable source for Algerian imports. The tender often signifies the time of the year at which the first out-of-quota volume of the new campaign is exported from the EU.
Platts Western Europe Delivered was unchanged on the week at Eur495/mt Friday, with France heard valued at Eur500/mt, UK Delivered at Eur490/mt, Belgium Delivered at Eur495/mt, German Delivered at Eur490/mt and the Netherlands at Eur495/mt.
Platts heard last week that the possibility of supply tightness in Western Europe has triggered some concern in the market for Mediterranean markets such as Spain, Italy and Greece, which often import volume for consumption from the Western market.
But for Italy, at least, Platts was told that current stocks are healthy, and supply is available to meet an uptick in demand. An action plan is also in place to ensure the country's demands through to the end of the year will be met.
Platts Mediterranean Delivered assessment was unchanged week on week at Eur525/mt, with Spain Delivered valued Eur5 lower on the week at Eur515/mt, Northern Italy Delivered Eur5 higher at Eur525/mt and Southern Italy up by the same amount at Eur540/mt.
