950830

EU seen awarding

up to 60,000 tonnes

sugar at tender

LONDON: The European Union (EU) is expected to award up to 60,000 tonnes of current series white sugar at its weekly tender on Wednesday, the fifth of its 1995/96 export tender.

Trade sources estimated tonnage at between 40,000 and 60,000 tonnes, compared with the 19,500 tonnes awarded last week which was entirely received by traders in France.

Estimates for a maximum rebate varied due to uncertainty about how the EU would calculate its restitution against world sugar prices, normally based on the current value of the October contract on the Matif exchange in Paris.

"The October/December spread has been knocked down quite a lot and the Commission made some intimation that they would take December into account - but nobody really knows whetherr that means they will take it fully into account," one trader said.

Traders agreed that the maximum rebate calculated on the Paris December position would be 47.519 European Currency Units (Ecus) per 100 kg of sugar, compared with last week's restitution of 45.603 Ecus.

But calculations based on the October position would give a maximum rebate of around 47.300 Ecus and perhaps as low as 47.00 Ecus, traders said.

The spread between the two nearby positions in Paris currently stands at around $10.

"Quantities have been very limited because nobody's really interested in paying with restitution basis the October when there's such a big difference between October and December," the trader said.

Licences for 1995/96 will be effective from October.-Reuter