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  1. #1
    Mid
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    Thailand may Delay Sugar Crushing to December as Prices Drop

    Thailand may Delay Sugar Crushing to December as Prices Drop
    Source: Reuters
    30/10/2008


    Bangkok, Oct 30 - The sugar crushing season in Thailand, Asia's top producer, may be delayed by as much as one month due to a fall in world sugar prices, traders and industry officials said on Thursday.

    Crushing, which usually begins in early November, may not begin until December this year as millers resist putting new Thai supply onto a depressed world market, risking the ire of farmers who are waiting to collect on their crops.

    "We just want to wait for a while and start crushing when prices are a bit higher than the current level," a trader at one major Thai milling firm told Reuters.

    An official at the Thai Sugar Millers Corporation told Reuters that millers would meet on Nov. 3 to set a date for beginning the crushing season.

    The crushing delay was unlikely to last beyond a month, traders said, predicting that farmers would stage protests because millers were not buying their cane.

    Although world sugar prices have tumbled by as much as a third since hitting a near two-year high in March, they rebounded this week and the market has held up far better than most other commodities, which have halved, or more, from the records.

    New York raw sugar futures for March delivery <SBH9> finished at 12.09 cents per lb on Wednesday, down from this year's high of just over 15 cents in early March. They had hit a four-month low last Friday due to fears of falling demand in a recession.

    Thailand is forecast to produce 7.2 million tonnes of sugar in 2008/09, according to the government's latest survey in mid-October. That is slightly below the previous forecast of 7.4 million tonnes as dry weather hit some cane growing regions.

    Traders expect Thailand to export about 4 million tonnes of sugar in 2008, slightly less than the global market deficit expected in the 2008/2009 year by consultants Kingsman.

    flex-news-food.com

  2. #2
    Days Work Done! Norton's Avatar
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    Quote Originally Posted by Mid
    risking the ire of farmers who are waiting to collect on their crops.
    They are already getting some ire from me and the family. Many of the growers here work on a very tight budget. Most have borrowed with payback promised in accordance with the normal harvesting/payment time (mid Nov).

    The last thing the growers need with the small margins they get are late payment penalties so frikkin Mitr Phol can squeeze even more profit than they deserve.

    Mitr Phol and their "friends" in government will ensure protesting farmers will do nothing to slow them down.
    Whenever you find yourself on the side of the majority, it is time to pause and reflect.

  3. #3
    Mid
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    there's other news floating around , subscription only so no access to the article body which suggests that the Indian start of the crushing season is also a factor .

  4. #4
    Hansum Man! panama hat's Avatar
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    Cutting rubber production and sales, delaying cane burning . . . excellent ideas to increase commodities prices . . . artificial shortage creation . . . brillaint!

    Ah, life os good sitting in one's a/c office and drawing a nice salary and creaming off the scams

  5. #5
    Days Work Done! Norton's Avatar
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    Quote Originally Posted by Mid
    there's other news floating around , subscription only so no access to the article body which suggests that the Indian start of the crushing season is also a factor .
    Sure there is a connection. Prediction! Price of sugar will go up. Thai gov will react to subsidize domestic price to reduce "inflation". Govt will try to recoup subsidy cost by setting Thai export sugar price high. Other countries will now have a price advantage and Thai sugar exports will fall. The rice deal all over again.

  6. #6
    Mid
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    Asia Sugar-Crushing disrupted, slow sales spook Thailand
    Thu Dec 4, 2008 2:36pm IST
    By Apornrath Phoonphongphiphat

    * Thai raw premiums hardly change at 50 points
    * Crushing delayed in India, Australia
    * New York sugar ends nearly 4 pct lower

    BANGKOK, Dec 4 (Reuters) - Crushing in major sugar-producing countries has been disrupted by a combination of wet weather and a dispute over cane costs, while Thailand is increasingly nervous over lagging sales, dealers said on Thursday.

    The premiums for Thai sugar barely changed at between 50 and 80 points over New York's March contract SBH9, which ended almost 4 percent lower at 11.16 U.S. cents per lb on Wednesday on worries of a severe global recession.

    "We haven't got reports of buyers defaulting on shipments yet, but because of a shortage in cash, Thai mills are in a hurry to sell much of their sugar," said a regional dealer.

    Fears were growing among dealers in Thailand that sales to main buyer Indonesia could fall after a trade pact between the two countries was delayed by the postponement of a Southeast Asian summit.

    The memorandum of understanding that should have been signed would oblige Indonesia, which is Southeast Asia's main consumer, to import at least 500,000 tonnes of Thai sugar per year.

    Thailand, which is Asia's largest exporter, has seen a decline in buying interest in recent months after consumers held back on purchases because of liquidity problems. Falling freight rates to Asia from Brazil may also spur consumers to shift to South American origins, said dealers.

    In the Indian sub-continent, the crushing season in the country's second-biggest state, Uttar Pradesh, has been delayed due to uncertainty about what a court will decide on cane costs, raising fears of a further cut in output estimates.

    The state government has set a price of 140 rupees per 100 kg, up from 125 rupees per 100 kg a year ago. Millers seeking a reduction in the price have taken the matter to court.

    "Production could drop if farmers switch to other lucrative crops as they don't want to get lower cane prices," a dealer said.

    But slower crushing and steady domestic demand have pushed local prices up by 15 rupees in the past week to 1,860 rupees ($37.14) per 100 kg, said Mukesh Kuwadia, secretary general of the Bombay Sugar Merchant Association.

    India is likely to produce around 20 million tonnes of sugar in the year to September 2009, down from 26.5 million tonnes a year ago. The South Asian country is the world's largest sugar consumer and also the second largest producer after Brazil.

    Neighbouring Pakistan said it may not import raw or refined sugar in the financial year to June 2009, with carryover stock and output from the new crop sufficient to match demand.

    "We have a carryover stock of 600,000 tonnes, and along with an expected 3.5 million tonnes output this season, this will almost equal demand," said Iskandar Khan, chairman of the Pakistan Sugar Mills Association.

    Pakistan's annual sugar consumption is about 4.2 million tonnes, Khan said.

    While a dispute over pricing in India delayed crushing, Australia's 2008/09 season could finish later than expected, due to rain in the northern Herbert/Burdekin region of Queensland state, which contributes 40 percent of the country's production.

    The wet weather meant raw sugar output was likely to be less than the 4.5 million tonnes that had been expected as late as last month, said Ian Ballantyne, the general manager of Canegrowers, a sugar farmers association.

    "There's still a fair amount of cane to come off, and at this time of the year it loses sugar content as, with the rain, the cane starts growing again and draws on its sugar," he said, adding that the harvest was not now expected to be completed until mid-December.
    ($1=50.08 rupee)

    (Additional reporting by Mayank Bhardwaj in NEW DELHI, Bruce Hextall in SYDNEY and Augustine Anthony in ISLAMABAD and Lewa Pardomuan in SINGAPORE) (Editing by Alan Raybould and Lewa Pardomuan)

    in.reuters.com

  7. #7
    Mid
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    Asia Sugar: Brazilian Sugar Imports Put Thai Premiums at Risk
    Source: Reuters
    11/12/2008

    Sydney, Dec 11 - Cheap imports of Brazilian sugar into Asia are threatening premiums for sugar from Thailand, the region's top exporter, where a larger than expected harvest is now gathering momentum.

    Brazilian sugar has been finding its way into Asia thanks to a massive drop in shipping rates as world trade has slowed in step with the deteriorating global economy.

    In Thailand, the sugarcane harvest is expected to be closer to 75 million tonnes than earlier estimates of 70 million to 72 million, an Australian-based industry analyst said.

    "There's going to be plenty of Thai sugar but no one seems to be interested in bidding for it," said the analyst, who did not wish to be named. "The biggest problem in the market is that there's a very substantial over supply in the short term."

    Brazilian sugar was selling at a substantial discount to the futures market, some 1.5-1.6 cents per pound less than the near month futures contract, the analyst said.

    "It's a huge discount historically which is a problem for the Thais as with very low freight rates and preparedness to sell at discount Brazilian sugar can go just about anywhere," he said.

    The analyst said there were unconfirmed reports that China had bought 100,000-200,000 tonnes of Brazilian sugar even though the Asian giant still has a substantial domestic stockpile.

    Long-term sugar fundamentals remain sound despite near-term pressures, said Toby Hassall, an analyst at Commodity Warrants Australia.

    "The fundamentals are fairly supportive, although the sharp falls in crude prices have negatively impacted on cane demand for ethanol, so if we are seeing a bottom in crude oil prices then that, maybe, will set up sugar for a bit of a bullish run next year," said Hassall.

    MEDIUM-TERM SUPPORT

    India is expected to become a net sugar importer next year, adding to support for prices in the medium term.

    India, where farmers have switched to other crops offering higher returns, is expected to produce around 20 million tonnes of sugar in the year to September 2009, down nearly a quarter from 26.5 million tonnes a year earlier.

    The country's top producing state, western Maharashtra, had produced 900,000 tonnes of sugar by Dec. 4 as the crushing season reaches its peak, down nearly 10 percent from 1.1 million tonnes a year ago, a senior industry official said.

    Traders in the Thai capital, Bangkok, said they expected Thai premiums to slide further as traditional buyers shifted to buying the sweetener from Brazil.

    They said there were no bids for Thai raws but some dealers offered sugar at 80 to 90 points over New York's March contract, itself unchanged from last week, when bids were heard at 50 points.

    Traders expect Thailand to sell less sugar next year to Indonesia, the main buyer of Thai sugar, because it has ample supplies.

    Also, Indonesia has applied new refined sugar standards, requiring greater whiteness that would mean higher costs for Thai millers, making their product uncompetitive.

    A new decree by Indonesia's industry ministry specifies 45 to 80 ICUMSA for refined sugar, with effect from the middle of February next year.

    "Imported refined sugar which does not meet requirements should be re-exported or destroyed," the decree said.

    Indonesia's food and beverages industry imported 606,728 tonnes of refined sugar in 2007 while local sugar refiners imported 1.9 million tonnes of raw sugar.

    Traders said there was speculation the Indonesian government might only allow imports of raw sugar next year.

    "In December we normally should have started selecting vessels for bringing in our sugar. But this year, we still don't even know if we can still import next year," a trader at a sugar importing firm said.

    Indonesia normally buys sugar from neighbouring Thailand and Australia.

    flex-news-food.com

  8. #8
    Mid
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    Thai white sugar premiums reach another record
    Friday July 16 2010

    PREMIUMS for Thai white sugar struck another record at $180 over London futures on tight supply and firm demand, dealers said on Friday, adding that consumers were likely to pay up.

    A decision by Thailand, the world's second-largest sugar exporter after Brazil, to buy back white sugar at a tender this week also helped premiums surpass a June peak of between $120 and $150.

    No deals were reported yet, said dealers on the sidelines of a sugar conference in Bali.

    agra-net.com

  9. #9
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    My wife is quite the wheeler dealer. She bought 25 rai of young sugar crop near Nong Saat (Udon way) in March. She's making a killing.

  10. #10
    Mid
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    UK bakers face dilemma as sugar supply runs dry
    Georgi Gyton
    04 December, 2010

    Bakers looking to negotiate new sugar contracts are being told by suppliers that they have nothing to sell them, as Europe faces massive shortages of white sugar. The lack of availability, coupled with the impact of bad weather in cane-growing countries, such as Thailand and Brazil, has pushed global sugar prices up to 30-year highs.

    British Baker understands that British Sugar is not in a selling position at the moment, but the company declined to comment on the current market situation.

    Last month, Tate & Lyle announced it would be putting up its prices by E176 per tonne from 3 January 2011, as it concluded that, to secure supply, it had no choice but to pay higher prices. The firm said white sugar prices across the globe were trading at 50-100% higher than those reported in the EU, so importers and their customers outside the EU were all paying higher prices and attracting sugar to their markets ahead of the EU.

    One bakery manufacturer, which supplies the major multiples, told British Baker he’d spoken with a number of major suppliers, including Tate & Lyle and British Sugar, as he had hoped to negotiate a new contract for the New Year. “All of them have indicated that they have no extra sugar to sell me,” he said. Fortunately, he said, he has sugar left from his current contract, but he believes other bakers will have problems when it comes to arranging new contracts. “The EU needs to raise the quota for domestic sugar production, to alleviate the situation,” he said.

    There is a global supply/demand deficit, said Ben Eastick, director at speciality sugar company Ragus. “EU consumption is well above the current EU beet production quota, with the shortfall to be met by imported cane sugar. But due to the current world market price, cane sugar is not being offered to the lower-priced EU market.”

    Richard Shepherdson, MD at sugar merchant and marzipan confectionery manufacturer Shepcote, said the firm is not currently having difficulty supplying its bakery customers, but it believes the situation will be very tight from June/July onwards next year. “There will be a lack of availability in the market. It’s primarily white sugar that’s affected, but it will have a knock-on effect to brown sugar – which is refined from white sugar – as well.”

    Gill Brooks-Lonican CEO, National Association of Master Bakers said it would be writing to the Government on behalf of its members.

    bakeryinfo.co.uk

  11. #11
    Mid
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    Sugar May Hit 40 Cents as Weather Hurts Crops, Thai Miller Says
    Supunnabul Suwannakij
    Editors: Richard Dobson, Ravil Shirodkar.
    December 23, 2010

    Raw sugar in New York may climb to 40 cents a pound by January on concern dry weather in Brazil, the biggest exporter, and record rainfall in Australia may tighten supplies, said the Thai Sugar Millers Corp.

    “Bad weather conditions are threatening crops around the globe,” said Vibul Panitvong, executive chairman of the company that represents the country’s 46 millers. Thailand is the world’s second-largest exporter.

    Raw sugar in New York yesterday gained to the highest level in 30 years on speculation that shipments from Brazil and India, the top producers, may be too low to meet demand. Rain in Queensland state this month after Australia’s wettest spring on record forced producers to leave some cane unharvested.

    “Frost in Florida and heavy snow in Europe will also worsen the supply situation,” said Vibul. The U.S. is considering increasing imports by 300,000 metric tons in 2010-2011, while European countries may not have adequate supply for overseas shipments this year, he said.

    Freezing weather in Florida, the biggest U.S. producing state, earlier this month “severely damaged” cane crops, U.S. Sugar Corp said Dec 17. About 60 percent of the mature crop hasn’t been harvested, and new plants faced temperatures “significantly below” 28 degrees Fahrenheit (minus 2.2 Celsius) for four hours, it said in statement.

    Global sugar demand will reach 165.3 million tons, almost 3 million tons more than supply in the marketing year that ends Sept. 30, ABN Amro Bank NV and VM Group said Dec. 10, reversing an earlier forecast for a surplus. Dry weather early in the growing season and rain during harvest hurt crops in Brazil, it said.

    Wet Weather

    Raw sugar for March delivery on ICE Futures U.S. gained 2.6 percent to 33.98 cents per pound yesterday. The price earlier reached 34.06 cents, the highest level for a most-active contract since November 1980. The exchange is closed today for the Christmas vacation.

    Sugar production this year in Australia may be 3.62 million tons, compares with a usual range of between 4.5 million to 5 million tons, industry group Canegrowers said Dec. 22.

    More than 5 million tons of cane would be unharvested this season because of wet weather, causing a “continued dampening of productivity and profitability in 2011,” the Brisbane-based group said.

    Still, sugar production in Thailand may increase 5.8 percent from the previous year as wet weather improved yields after drought earlier this year parched cane plantations, said Vibul.

    “Rains have improved yields, potentially boosting sugar output to be higher than last year,” said Vibul. Output in the year started Nov. 27 is likely to be around 7.3 million tons with cane output estimated about 67.5 million tons, he added.

    That compared with 6.9 million tons and cane production of 68.5 million tons in the previous year, according to the Office of the Cane and Sugar Board, an industry regulator.

    businessweek.com

  12. #12
    Mid
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    7 March 2011

    Thousands of sugarcane farmers have closed off the road and set up tents in front of the Democrat Party.

    Motorists are being advised to avoid the area as traffic is at a standstill.


    Thai-ASEAN News Network

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