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By Marvin G Perez and Manisha Jha (Bloomberg) White-sugar spreads climbed to a record high as a shipping container shortage increased demand for supplies delivered through the exchange.
The March contract’s premium over May futures rose to $23.50 a ton, the highest since the spread began in 2019. The March over May premium also jumped for raw sweetener in New York. Shipping rates have risen due to a shortage of containers and demand to stockpile commodities amid the Covid-19 pandemic.
The container shortage “is resulting in a higher demand for the white contract structure,” because the exchange uses a delivery method called break-bulk, which is cheaper, said Carlos Mera, an analyst at Rabobank International in London.
White-Sugar Spread at Record High on Container Shortage Worry
Bloomberg 2/1/2021 Marvin G. Perez and Manisha Jha
(Bloomberg) White-sugar spreads climbed to a record high as a shipping container shortage increased demand for supplies delivered through the exchange.
The March contract’s premium over May futures rose to $23.50 a ton, the highest since the spread began in 2019. The March over May premium also jumped for raw sweetener in New York. Shipping rates have risen due to a shortage of containers and demand to stockpile commodities amid the Covid-19 pandemic.
The container shortage “is resulting in a higher demand for the white contract structure,” because the exchange uses a delivery method called break-bulk, which is cheaper, said Carlos Mera, an analyst at Rabobank International in London.