Asian sugar prices fall as supply outlook continues
Published: 03/09/2010, 4:09:44 PM
Sugar prices in Asia fell in the week to Tuesday, as tumbling futures kept buyers on the sidelines, amid improving supply outlook, according to Dow Jones.
"Buyers are not keen. They preferred to wait and see," as prices continued to fall, said a trader at one of the largest producers in Thailand.
ICE raw sugar futures have slumped by about 25% since the beginning of last month due to a combination of factors such as external macroeconomic concerns, a stronger US dollar, weak demand and the coming large Brazilian crop.
Cash premiums for Thai high-pol raw sugar, a high-quality grade, for March-May shipment were bid at 165 points over the ICE May contract, and offered at 210 points, slightly wider from a week earlier.
Market participants said news that India may produce more sugar than earlier expected, which could be a double whammy to prices, coupled with a large Brazilian crop, kept buyers very cautious.
"A sharp fall in overseas sugar prices has also spilled over to domestic prices," said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association.