Sugar may hover around 16-17 cents a pound for the rest of the year as a global surplus weighs on the market even as demand is set to outstrip supply in the 12 months starting from October, according to Kingsman SA.
Worse-than-expected dry weather in Thailand may also cut output in the world's second-biggest exporter by 500,000 tonnes to 10.8 million tonnes next season, Kingsman said today. - Panumas Sanguanwong
"We have a bias to the downside because the market still needs to clear more sugar from this year's excess production," founder Jonathan Kingsman said in an interview today before a conference in Bangkok. "Warehouses are still full and we still need Brazilian millers to make more ethanol than sugar."
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