Platts EU 45 sugar FOB containers assessment for November shipment was assessed at a premium of $36/mt above the December (Z) White Sugar Futures (London 5) contract Friday, unchanged week on week.
Last week Platts heard the first indications for the Containers market, with interest in the buy and sell side continuing to gather speed in the last seven days, as the market aims to gauge the true value of the export market.
A bid was last heard for November/December 15 shipment at Z+$35 on FAS basis against and offer at Z+$35 from Dunkirk or Antwerp at sellers option.
Traders continue to wait to hear if the Algerian tender scheduled for the end of November will go ahead. While one source said the tender would be canceled, the vast majority are expected to sit on their hands until there is confirmation from Algeria either way.
Platts had previously heard a reason for the delay was Algeria was keen to switch from a tender to a licensing system, and one source heard the past week that this had moved one step closer to fruition.
A trader said a licensing system would remove any limitation on the EU to ship volume under current tender terms by the end of December. Instead exports would be allowed to flow out of the EU at intervals on a longer term basis throughout the campaign, which could increase available volume and liquidity on the cash market.
Platts Mediterranean Delivered assessment was also unchanged on week at Eur525/mt. The assessment was considered a fair reflection of Spain Delivered valued at Eur515/mt, Northern Italy Delivered Eur5/mt lower at Eur520/mt and Southern Italy flat at Eur540/mt. A fresh indication was heard for the Greek Delivered market, valued at Eur520/mt.
Under a licensing system, a trader said Algeria's geographical position would mean it was well placed to export to deficit markets in the Mediterranean, such as Italy and Spain, while neighbor Tunisia will also become a key market.
Platts heard northern Italy was already importing volume into warehouses early in the campaign. The EC confirmed this week that EU import licenses of around 16% of the total 2.5 million mt had already been awarded in just one month.
Platts Western Europe Delivered assessment was unchanged on the week at Eur495/mt Friday, October 23, reflecting the latest valuations for the region. France was heard valued at Eur500/mt, with UK Delivered at Eur490/mt, Belgium Delivered at Eur495/mt, German Delivered at Eur490/mt, and the Netherlands at Eur495/mt.
Traders said that reports in the past week that production could be the worst it has been in 40 years were exaggerated, and urged the market to wait for reliable figures to be released.
One trader said that while it would be irresponsible not to consider production lower on year, there is no shortage of supply, with final production expected to be close to 15 million mt. This is down from an almost perfect crop at 19 million mt in 2014, but just 2 million mt below an average crop of 17 million mt in 2013.
