Indian white sugar prices slip
Published: 10/08/2013, 10:26:22 AM
Prices of Indian white sugar dropped in thin trade this week, dealers said on Tuesday, while Thai raws premiums were stuck in a range as trading houses digested a sharp rebound in New York futures, according to Reuters.
ICE raw sugar hit a 6/1/2-month high on Monday after recent wet weather hampered crushing in top grower Brazil. The March contract has rebounded more than 16% since hitting a three-year low of 15.93 cents a lb in mid-July.
But the physical market in Asia has shifted its attention to India and Thailand, which are likely to compete for buyers. Main consumer India may export as much as 3 million tonnes of sugar in the 2013/14 season to reduce excess stocks.
"The current price is at around US$470 a tonne for sugar from the old crop. New crop is yet to come out," said a dealer in Dubai, who trades Indian sugar.
Two weeks ago, white sugar from the main producing state of Maharashtra was offered at US$490 a tonne free on board. London white sugar has rebounded from a 3-year low of around US$458 a tonne in mid-July, but prices are still below recent highs of around US$500.
"Raws are not offered at the moment, but if white sugar prices drop further, it will be more attractive to millers to sell and export raw sugar. We need to watch the futures market and the currency movements," said the dealer.