Thai sugar premiums are expected to hold steady over the next few days due to tight supplies and fresh demand from Indonesia, Southeast Asia's biggest buyer, traders said on Monday. Raw sugar premiums for April-May 2005 shipment were offered at 165 points over the New York Board of Trade raw sugar futures price on Monday, versus 175 points over last week. There were no bids on Monday. "Indonesia should be buying soon. I think Indonesia will buy from Australia and some from Thailand," said one trader. "Thailand does not have much sugar left for sale this year."
Indonesia said last week it would issue permits to buy 227,000 tonnes of raw sugar soon, ahead of its crushing season.
Indonesian Agriculture Minister Anton Apriyantono has said deliveries of raw sugar would be needed at the beginning and the end of the crushing season, which runs from May through November.
Thailand is Asia's largest exporter of raw sugar. Its key buyers are Japan, South Korea, Taiwan, Indonesia and Malaysia.
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