Brazil-Prices push mills to stockpile
Forward sugar prices are at their biggest premium to cash in nearly five years, spurring mills in Brazil and Thailand to store sugar and keep pressure on prices, Reuters reports. Brazil's biggest operators disclosed data last week showing they are holding about 1.2 million mt significantly more than last year, and said they are withholding nearby sales. A manager for sugar and ethanol at INTL FCStone in Brazil estimated that stocks in the country reached 6.5 million mt by the end of July, 1.5 million mt more than the year before.
Data published by Reuters showed that as of June 30th, three big sugar companies were holding stocks between 77.1% and 113.5% higher than a year earlier.
Mostly dry weather is expected to continue for the remainder of this week in cane areas of Sao Paulo and Minas Gerais states, forecaster Meteorlogix said, Dow Jones reports. However, scattered light showers were seen in the east and southeast of the region over last weekend and a few light showers are forecast through to Tuesday.