SUGAR MARKET SEES GOOD RECENT OFFTAKE
Reports the Soviet Union has lately
extended its recent buying programme by taking five to eight
raws cargoes from the free market at around 30/40 points under
New York May futures highlight recent worldwide demand for
sugar for a variety of destinations, traders said.
    The Soviet buying follows recent whites buying by India,
Turkey and Libya, as well as possible raws offtake by China.
    Some 300,000 to 400,000 tonnes could have changed hands in
current activity, which is encouraging for a sugar trade which
previously saw little worthwhile end-buyer enquiry, they added.
    Dealers said a large proportion of the sales to the Soviet
Union in the past few days involved Japanese operators selling
Thai origin sugar.
    Prices for nearby shipment Thai sugars have tightened
considerably recently due to good Far Eastern demand, possibly
for sales to the Soviet Union or to pre-empt any large block
enquiries by China, they said.
    Thai prices for March/May 15 shipments have hardened to
around 13/14 points under May New York from larger discounts
previously, they added.
    Traders said the Soviet Union might be looking to buy more
sugar in the near term, possibly towards an overall requirement
this year of around two mln tonnes. It is probable that some
1.8 mln tonnes have already been taken up, they said.
    Turkey was reported this week to have bought around 100,000
tonnes of whites while India had further whites purchases of
two to three cargoes for Mar/Apr at near 227 dlrs a tonne cost
and freight and could be seeking more. Libya was also a buyer
this week, taking two cargoes of whites which, for an
undisclosed shipment period, were reported priced around
229/230 dlrs a tonne cost and freight, they added.
    Futures prices reacted upwards to the news of end-buyer
physicals offtake, although much of the enquiry emerged
recently when prices took an interim technical dip, traders
said.
    Pakistan is lined up shortly to buy 100,000 tonnes of
whites although traders said the tender, originally scheduled
for tomorrow, might not take place until a week later.
    Egypt will be seeking 20,000 tonnes of May arrival white
sugar next week, while Greece has called an internal EC tender
for 40,000 tonnes of whites to be held in early April, for
arrival in four equal parts in May, June, July and August.
 REUTER
