Moderate delivery seen likely against Liffe sugar expiry
* Delivery may include Brazilian, Central American supplies
* Open interest as of Tuesday was 417,350 tonnes
LONDON Feb 12 (Reuters) - A moderate white sugar delivery tonnage, likely to include Brazilian and possibly Central American supplies, is expected against the expiry of the Liffe March futures contract on Thursday, brokers said on Wednesday.
One London-based broker said the delivery could come in at around 200,000 tonnes, but added that it was still too soon to make any accurate forecasts.
He said he expected Brazilian and possibly Central American sugar to feature in the delivery tonnage, and perhaps some Indian and Mexican supplies.
The delivery tonnage was expected to be below the substantial open interest of 8,347 lots (417,350 tonnes) as of Tuesday, with two days' trading to go to the expiry which will take effect after the close on Thursday.
When the December futures contract expired a modest 41,650 tonnes were tendered.
Brokers said the front spread on Wednesday signalled potential nearby demand, trading out to a $6 premium.
"This has also contributed to the strengthening of the May-August spread, trading at -$6.50 and especially of the May-May premium, changing hands currently at $88 per tonne," one London-based broker said.
"The run up to expiry tomorrow may be a rough ride."
Trade sources are expected to have a clearer idea of the delivery shortly after the market closes on Thursday.
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