Thailand’s sugar exports face price dip

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sugar shipWith global sugar prices in February 2013 falling to their lowest level since August 2012, Thailand is increasingly facing pressure in its sugar exports.

By Mariana Angela Garcia

Thai raw sugar has been struggling to make sales in the market, specifically in the Japanese market. The good news for Thailand is that it was able to make some sales of white sugar to Pakistan on February 19 and Iraq earlier in the same month. Iraq was reported to have purchased 50,000 tonnes of Thai white sugar.

Global top sugar producer Brazil has kept prices under pressure so far, causing the dip.

Nick Penney, broker for Sucden Financial, a firm specialising on the sugar market, commented that traders are becoming sensitive to the availability of prompt or nearby sugars during the current inter-crop period in top producer Brazil.

“With availability of center-south Brazilian sugars at lower prices than during the season, traders may be looking to absorb Central American or even Thai sugar and attract them to the tape (expiry),” Penney said.

 

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Reading Time: 1 minute

With global sugar prices in February 2013 falling to their lowest level since August 2012, Thailand is increasingly facing pressure in its sugar exports.

Reading Time: 1 minute

sugar shipWith global sugar prices in February 2013 falling to their lowest level since August 2012, Thailand is increasingly facing pressure in its sugar exports.

By Mariana Angela Garcia

Thai raw sugar has been struggling to make sales in the market, specifically in the Japanese market. The good news for Thailand is that it was able to make some sales of white sugar to Pakistan on February 19 and Iraq earlier in the same month. Iraq was reported to have purchased 50,000 tonnes of Thai white sugar.

Global top sugar producer Brazil has kept prices under pressure so far, causing the dip.

Nick Penney, broker for Sucden Financial, a firm specialising on the sugar market, commented that traders are becoming sensitive to the availability of prompt or nearby sugars during the current inter-crop period in top producer Brazil.

“With availability of center-south Brazilian sugars at lower prices than during the season, traders may be looking to absorb Central American or even Thai sugar and attract them to the tape (expiry),” Penney said.

 

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