Yahoo Finance Dreyfus Asks ICE Exchange to Step In After Sugar Delivery Delays
(Bloomberg) -- Louis Dreyfus Co. asked Intercontinental Exchange Inc. to intervene in a dispute over delays to deliveries of sugar sold through the New York bourse, according to people familiar with the matter.
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The Rotterdam-based company, one of the world’s largest agricultural commodities traders, has yet to receive some of the sugar that was sold when March futures expired more than two months ago, said the people, who asked not to be identified because the information is private. The delays spurred the request for ICE to step in to help settle the dispute with seller Wilmar International Ltd., the people said.
Read More: Delayed Sugar Deliveries Raise Debate Over Exchange Rules
The issue highlights how some traders use technicalities and loopholes in market rules, and has sparked a debate over whether current exchange rules are sufficient to protect buyers. ICE doesn’t state a time frame for vessels to be loaded as long as the seller pays demurrage, the cost for holding back a vessel — something that’s happening, the people said.
Agriculture commodities traders Sucres et Denrees SA and Dreyfus bought a combined 1.3 million metric tons of sugar when March futures expired. Wilmar was the main seller, delivering more than 80% of that.
ICE is yet to rule on the request, the people said. The exchange declined to comment. Dreyfus and Wilmar didn’t respond to emails seeking a comment.
--With assistance from Ilena Peng.
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