Record-high Sugar Output This Year
Sugar, the second-largest commodity exporter, may reach record export figure for the third year as millers expand their capacity to meet rising regional demand.
This year the cane harvest may total 105 million metric tons, bringing sugar output to about 10.7 million tons.
Increased output will enable Thailand to boost supplies to Asia, where demand remains strong. The region faces a long-term sugar deficit as economic growth raises demand, with supply set to trail usage by about three million tons this year.
Raw sugar on ICE Futures United States has slumped 18 per cent over the past 12 months on prospects for another global glut. The July-delivery contract traded at 19.98 cents per pound at 3.38pm in Singapore after rising 0.4 per cent.
According to the government's Office of the Cane & Sugar Board, sugar output may be 10.4 million tons next season from a cane crop of 100 million tons. Sugar output may total 10.85 million tons in 2012 to 2013 from this year's 10.42 million tons, according to a projection from the US Department of Agriculture.
Thai millers are moving ahead with plans to improve the quality of their raw sugar to match output from rival Brazil and increase shipments to Asia and the Middle East. Brazil is the world's biggest sugar exporter.
However, but Thailand has advantages on proximity in supplying to Asian countries.
Source: Bangkok Post