The premium buyers pay to obtain raw sugar from Thailand, the world's second-biggest exporter, slid over the past week as global demand for the sweetener declines, according to Green Pool Commodity Specialists Pty Ltd.
Raw sugar from Thailand is at a premium of US$2.60 a pound above the price on ICE Futures US in New York, the Brisbane- based researcher said in a report e-mailed on Monday. Thai sugar was for sale at a premium of $3 to $3.20 a pound a week earlier. Raw sugar futures have climbed 7.6 per cent so far this month in New York.
"Physical demand seemed to dissipate on the rally," Tom McNeill, a director at the company, said in the report, referring to rising futures. "Ramadan buying is over and Chinese buyers resold some centre south Brazil cargoes."
This article is older than 60 days, which we reserve for our premium members only.You can subscribe to our premium member subscription, here.