AGL 38.40 Increased By ▲ 0.24 (0.63%)
AIRLINK 133.99 Decreased By ▼ -0.20 (-0.15%)
BOP 9.01 Increased By ▲ 0.16 (1.81%)
CNERGY 4.74 Increased By ▲ 0.05 (1.07%)
DCL 8.89 Increased By ▲ 0.22 (2.54%)
DFML 39.85 Increased By ▲ 0.07 (0.18%)
DGKC 85.24 Increased By ▲ 0.09 (0.11%)
FCCL 34.60 Decreased By ▼ -0.30 (-0.86%)
FFBL 75.74 Increased By ▲ 0.14 (0.19%)
FFL 12.76 Increased By ▲ 0.02 (0.16%)
HUBC 110.30 Increased By ▲ 0.85 (0.78%)
HUMNL 14.51 Increased By ▲ 0.41 (2.91%)
KEL 5.45 Increased By ▲ 0.05 (0.93%)
KOSM 8.09 Increased By ▲ 0.34 (4.39%)
MLCF 41.00 Decreased By ▼ -0.37 (-0.89%)
NBP 70.25 Increased By ▲ 0.55 (0.79%)
OGDC 193.00 Decreased By ▼ -0.62 (-0.32%)
PAEL 27.35 Increased By ▲ 1.14 (4.35%)
PIBTL 7.50 Increased By ▲ 0.08 (1.08%)
PPL 164.70 Increased By ▲ 0.85 (0.52%)
PRL 26.35 Decreased By ▼ -0.01 (-0.04%)
PTC 20.50 Increased By ▲ 1.03 (5.29%)
SEARL 88.50 Increased By ▲ 4.10 (4.86%)
TELE 7.88 Decreased By ▼ -0.11 (-1.38%)
TOMCL 35.20 Increased By ▲ 1.15 (3.38%)
TPLP 9.00 Increased By ▲ 0.28 (3.21%)
TREET 17.16 Decreased By ▼ -0.02 (-0.12%)
TRG 60.10 Decreased By ▼ -0.90 (-1.48%)
UNITY 31.25 Increased By ▲ 2.29 (7.91%)
WTL 1.37 No Change ▼ 0.00 (0%)
BR100 10,791 Increased By 15.6 (0.15%)
BR30 32,449 Increased By 215 (0.67%)
KSE100 100,339 Increased By 256.3 (0.26%)
KSE30 31,184 Decreased By -9.1 (-0.03%)

A weak peso has transformed Argentine sugar deliveries against ICE raw sugar contracts from a rarity to a regular occurrence, with potentially more than 100,000 tonnes available to tender against the July contract which expires next month. The origin is seen by some as an "unwelcome guest" due to slow loading rates and high port charges with raw sugar futures expiries traditionally dominated by neighbour Brazil.
Traders said in previous years Argentine millers had been reluctant to export surplus supplies as prices were more attractive on the domestic market. The weak peso has, however, now tipped the balance in favour of dollar-denominated exports. In December 2015, Argentina said it was lifting its currency controls and would allow the peso to float, following promises by President Mauricio Macri for reforms in order to increase exports and spur economic growth.
"Letting the peso float has made Argentina (delivery) more attractive," one senior European trade source said. Sugar from Argentina has been tendered at the last two expiries with 63,000 tonnes against March futures and 54,000 tonnes against May. Another European trade source said: "Argentina might be an unwelcome guest at the expiry due to complicated logistics and its location."

Copyright Reuters, 2016

Comments

Comments are closed.