News ID: 153006
Published: 0224 GMT June 11, 2016

Iran snaps up first sugar purchases since lifting of sanctions

Iran snaps up first sugar purchases since lifting of sanctions

Importers in Iran have bought at least 250,000 tons of Brazilian raw sugar in the first purchases since international sanctions were lifted on Tehran in January, trade sources said.

One source said the purchases were between 250,000 and 300,000 tons for May to June shipment, while another said the quantity was probably bigger than that, Reuters reported.

"Buyers in Iran have clubbed together to make up cargoes given tight financing," one source said.

Another source said further buying was unlikely for the moment given a rally in raw sugar futures that pushed them to their highest level in more than 2.5 years.

"The market has shot up, and that puts a question mark over (further business)," the second source said.

"When the business was booked, the market was 16.5-17 cents a pound. Now it's 19.68. You can't make a profit if you take it in now."

International measures against Iran — including banking restrictions — were lifted in January as part of a deal with world powers under which Tehran agreed to modify its nuclear program.

While there were never restrictions on Iran's food and humanitarian trade, continuing trade finance problems together with stockpiling of commodities, including sugar, last year has slowed activity.

Trade sources said Iranian buyers last picked up sugar in the final quarter of last year.

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