El Nino may hurt sugar production in the Philippines
Wednesday, 20 January 2010
SINGAPORE, Jan 19 (Bloomberg): El Nino, which reduces rainfall in Asia, may curb sugar production in the Philippines, squeezing supply in Southeast Asia's second-largest exporter if it lasts for five months, a government official said. Raw sugar rose.
"Our output may be lower and we might see tightness in supply" after April, said Aida Ignacio, deputy administrator at the Sugar Regulatory Administration, in a phone interview today. "How low it will go, we still don't know."
Lower output may make the Philippines an importer for a second year. Indonesia, Iraq, Egypt, Pakistan and Tanzania are seeking sugar to cool prices, straining global supplies forecast by Czarnikow Group Ltd. to fall short of demand by 13.5 million metric tonnes in the 2009-2010 season. El Nino can affect agricultural production across parts of Asia and curb rice production in Thailand, the world's biggest exporter.
"An extended El Nino is bad news," Coscolluela said in a cell phone text message today, referring to the period from February through June or July. Still, "so far, our new crop is actually looking good," he said.
The Philippines may buy as much as 150,000 tonnes of sugar this year, Rafael Coscolluela, the regulatory administrator, said last week. That would be the first purchase for domestic use since 2002, according to Amarra.
"Our output may be lower and we might see tightness in supply" after April, said Aida Ignacio, deputy administrator at the Sugar Regulatory Administration, in a phone interview today. "How low it will go, we still don't know."
Lower output may make the Philippines an importer for a second year. Indonesia, Iraq, Egypt, Pakistan and Tanzania are seeking sugar to cool prices, straining global supplies forecast by Czarnikow Group Ltd. to fall short of demand by 13.5 million metric tonnes in the 2009-2010 season. El Nino can affect agricultural production across parts of Asia and curb rice production in Thailand, the world's biggest exporter.
"An extended El Nino is bad news," Coscolluela said in a cell phone text message today, referring to the period from February through June or July. Still, "so far, our new crop is actually looking good," he said.
The Philippines may buy as much as 150,000 tonnes of sugar this year, Rafael Coscolluela, the regulatory administrator, said last week. That would be the first purchase for domestic use since 2002, according to Amarra.