Virtual Metals Group

Media/Press

Sugar Rises Most in a Week in London on Stockpile Speculation

April 6, 2010 (Bloomberg)

"White sugar rose the most in a week in London on speculation that importers will increase stockpiles to ensure supplies.

"Pakistan, Asia's third-largest user, invited bids to import 200,000 metric tons of white sugar. A global supply surplus of 190,000 tons in the current quarter won't make up for a shortfall of 8.8 million tons in the prior six months, Fortis Bank Nederland and researcher VM Group said in March.

""By the third quarter, the balance wouldn't have improved in Asia, so buying in the second and third quarters could be quite a big presence," Gary Mead, a London-based analyst with VM, said by phone today.

"White, or refined, sugar for August delivery advanced $10.40, or 2.3 percent, to $463.60 a ton, the most since March 30, on the Liffe exchange. May-delivery sugar is $25.40 more expensive than the August contract, indicating concern about immediate supply.

"Raw sugar for May delivery was unchanged at 16.40 cents a pound on ICE Futures U.S. in New York, paring an advance of as much as 1.6 percent.

"India's government asked mills to sell the sweetener on a fortnightly basis this month, switching from weekly sales, Vinay Kumar, managing director of the National Federation of Cooperative Sugar Factories Ltd., said in an interview today. The government controls the sugar market by telling mills how much they should sell each month.

"Flooding in China is a concern with widespread harvest delays likely, weather forecaster AccuWeather Inc. said in a report today. Outbreaks of rain from the Yangtze River on south through tomorrow will total 0.5 to 2 inches with locally higher amounts, the report said.

"Coffee Advances

"Robusta coffee for May delivery gained $7, or 0.5 percent, to $1,363 a ton on Liffe. Coffee exports from Vietnam in March fell 20 percent to 1.83 million bags from 2.27 million a year earlier, researcher F.O. Licht said in a note dated April 1 and released today.

"Shipments dropped 8.3 percent from a year earlier to 10.2 million bags for the first seven months of the 2009-10 crop year, Licht said. Vietnam is the world's biggest producer of robusta beans, used in instant coffee and blends.

"Cocoa for May delivery slipped 63 pounds, or 2.8 percent, to 2,188 pounds ($3,413) a ton. It was the biggest decline since Feb. 23.

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  • September 26th - Europe's central banks seen queuing up to sell gold (Reuters)
  • THE YELLOW BOOK - Virtual Metals Research & Consulting and Fortis Bank in a new analysis of the global fundamentals and outlook for the international gold market.
  • Virtual Metals Research & Consulting announces today the launch of an innovative mechanism for the funding and development of sustainability projects in the minerals extraction industry. The new entity – called MineLife - is a collaboration between Virtual Metals, Barrick Gold Corporation, Gold Fields Limited, and Harmony Gold Mining Limited. It is dedicated to alleviating poverty and building long-term socio-economic development in Africa and, ultimately, in other developing markets.
  • Q2 05 The Hedge Book - Global hedging falls 2.5 Moz to 53.1 Moz
  • The latest edition of the Hedge Book, sponsored by Mitsui, shows dehedging quickened to 2.5 Moz in Q2 05, up from just 1.3 Moz in Q1 05. For the press release and full report click here

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