Tag Archives: thai sugar

Indonesia fails to buy sugar by tender

Indonesia’s  state sugar buyer PT Perkebunan Nusantara X has failed to buy over 40,000 tonnes of white sugar by tender on more than one occasion.  State buyers are granted permits to import white sugar to make up expected deficits arising from lower domestic production.  State buyers are tasked with buying 450,000 tonnes but so far have only managed to buy approximately 10% of this quota.

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Thailand sugar crop larger than expected

Thailand is forecast to produce approximately 7.8 million tonnes of sugar during the 2010/11 season.  Initial forecasts were for 6.8 million tonnes.  Crushing will end next month in Thailand, the world’s second largest sugar exporter after Brazil.

A larger crop in Thailand and expected decreased demand from Japan has seen prices drop recently.  China and Indonesia may step in to fulfil their buying requirements at such price levels.

Thai whites were offered at a premium $25 above London No. 5 which is down from the recent $40 premium. While Thai raws were offered at a premium of 200 points above New York No. 11 which is down from the recent 280 point premium.  Demand seemed to be weak for Thai raws of Japanese specification.  Thai premiums may weaken further as a result of the larger than expected crop, weaker demand from Japan and the possibility of Indian exports becoming available.

Earthquake damages sugar refineries

Following the earthquake last week sugar refining in Japan is now focused in the west of the country away from affected regions. Two refineries were damaged in Chiba.  Although the damage is thought to not have been too serious.

Japan has 12 sugar refineries and imports approximately 1.5 million tonnes of raw sugar per annum.  Domestic raw sugar output is approximately 650,000 tonnes.  Japan makes up approximately 1.5% of global consumption.  Thai sugar for the Japanese market was not being offered following the earthquake.

Efforts are ongoing in Japan to cool two nuclear reactors with water.

 

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