SINGAPORE, March 1 Singapore's Wilmar
International Ltd is the sole receiver of the ICE
futures U.S. March raw sugar contract, taking advantage of
declines in global prices, a senior company official told
It will be the first time Wilmar takes delivery of sugar
since foraying into the sweetener market three years ago, trade
sources say. The actual amount delivered, as well as delivering
and receiving parties, will be reported by the exchange on
"I can confirm to you we were the sole receiver and we
effectively decided to receive (sugar) as the price went too low
recently," said Jean-Luc Bohbot, managing director of Wilmar
Sugar Pte Ltd.
He gave no further details but trade sources said the
company was the receiver of an estimated 3,007 lots, or roughly
152,762 tonnes -- a move that is more common for trading giants
such as Cargill or Louis Dreyfus.
New York March futures plunged to a 2-1/2 year low on
Thursday before rebounding sharply, and the sugar market was
under pressure from a third consecutive global surplus. Prices
have dropped around 6 percent so far this year.
Wilmar, the world's largest listed palm oil company, has
rapidly expanded its sugar operations in recent years.
Sugar made up almost a fifth of Wilmar's fourth-quarter 2012
pre-tax profits, according to its Feb. 22 results statement. Its
group quarterly pre-tax profit was $548.2 million.
Deliveries are closely watched in the world sugar market as
an indicator of demand and possible trade flows, with dealers
noting deliverers of this contract being Noble, Sucden, Cargill
and Louis Dreyfus.
While the delivery is slightly smaller than the expected
200,000 tonnes, traders were surprised that Wilmar was believed
to be the sole receiver.
(Reporting by Lewa Pardomuan and Marcy Nicholson; Editing by