Falling prices help Thailand's sugar premiums
Monday, 17 May 2010
BANGKOK, May 16 (Commodity Online): Falling sugar futures prices across the globe attracted more buyers for Thailand's sugar premiums as it expanded gains during the week.
Fresh demand from Pakistan and Vietnam and are likely to rise further as the premium on Thai high-polarisation raw sugar was offered at 450 points over New York future prices, up from 300 points in late April, they said.
The J-spec, or a low-polarisation, raw was offered steady at around 300 points.
Benchmark New York raw sugar for July delivery ended at 14.67 cents per lb on Wednesday, down more than 50 per cent compared to a 29-year high of 30.40 cents per lb marked in February.
Pakistan is due to open tenders to buy a total 600,000 tonnes of white sugar as domestic production fell short of demand, said Trading Corporation of Pakistan (TCP).
The country will hold tenders on May 15, May 22 and May 29 to buy 200,000 tonnes of white sugar at each occasion. Pakistan has already bought 200,000 tonnes of white sugar from the UAE-based company, Al-Khaleej, by last week's tender.
Pakistan issued several tenders from December 31 to buy sugar from the international market, after estimating its 2009/10 crop would yield about 3 million tonnes of white sugar, short of annual demand of 4.2 million tonnes.
The TCP has so far contracted to buy 575,000 tonnes of white sugar, out of which more than 50,000 tonnes has already arrived while about 68,000 tonnes more were expected by May 20.
Fresh demand from Pakistan and Vietnam and are likely to rise further as the premium on Thai high-polarisation raw sugar was offered at 450 points over New York future prices, up from 300 points in late April, they said.
The J-spec, or a low-polarisation, raw was offered steady at around 300 points.
Benchmark New York raw sugar for July delivery ended at 14.67 cents per lb on Wednesday, down more than 50 per cent compared to a 29-year high of 30.40 cents per lb marked in February.
Pakistan is due to open tenders to buy a total 600,000 tonnes of white sugar as domestic production fell short of demand, said Trading Corporation of Pakistan (TCP).
The country will hold tenders on May 15, May 22 and May 29 to buy 200,000 tonnes of white sugar at each occasion. Pakistan has already bought 200,000 tonnes of white sugar from the UAE-based company, Al-Khaleej, by last week's tender.
Pakistan issued several tenders from December 31 to buy sugar from the international market, after estimating its 2009/10 crop would yield about 3 million tonnes of white sugar, short of annual demand of 4.2 million tonnes.
The TCP has so far contracted to buy 575,000 tonnes of white sugar, out of which more than 50,000 tonnes has already arrived while about 68,000 tonnes more were expected by May 20.