Asian prices mostly firm
Published: 08/31/2010, 5:08:18 PM
Sugar prices in Asia were firm in the week to Tuesday, with support from an uptrend in the futures market and good demand, while Indian prices rose on buying at the start of the festival season, according to Dow Jones.
Cash premiums for Thai J-spec raw sugar for shipment in the July-September period were quoted at 700 points over the ICE Futures October contract, up from 550 points from a week earlier.
"The market is mostly demand driven as there is not much supply left with the millers," a trader based in Thailand said.
Thailand, Asia's largest sugar exporter, is estimated to have exported about 4.5 million metric tonnes of sugar in the 2009/10 season. The country produced 6.9 million tonnes of sugar in the 2009/10 crop year.
Crushing for the new season crop in Thailand usually starts in late November and exports begin in January.
"There might be a delay of couple of weeks in crushing of the cane as the crop has yet to mature fully," the Thailand-based trader said.
Meanwhile, Indonesia's sugar output is likely to increase 8% next year from a targeted 2.7 million tonnes this year, according to official estimates.
"With the onset of the festival season in the country, demand will be on the higher side, keeping prices firm," said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association.
Traders are waiting for the government to release the sugar quota for September later Tuesday, he said