Thai sugar trade seen slow, Taiwan seeking whites

Thai sugar trade is expected to remain slow over the next few days, with uncertainty about the next crop still making exporters reluctant to make new offers for shipment in 2006, traders said on Monday.
Raw sugar premiums for May-July shipment 2006 shipment were offered steady at 115 points over the New York Board of Trade raw sugar futures prices on Monday without bids.
"Most exporters have not offered. They are not sure yet how the crop would eventually develop," said one trader, referring to the crop to be harvested next month.
So far, exporters have sold forward contracts for less than 10 percent of the sugar, both raw and whites, they expect Thailand to produce in the new crop, traders said.
The wet season usually starts in June and runs through to October. But last year, the rain stopped in late September, cutting the crop further below expectations and leaving exporters overcommitted.
The new crop is expected to come in at 40-43 million tonnes, 10-15 percent lowers than the 47 million tonnes of the previous crop due to a persistent drought, traders said.
Heavy rains have fallen in most cane growing areas and there were flash floods caused by Typhoon Damrey in northern Thailand last week, but they had no impact on the crop, traders said.
Taiwan buyers were in the market on Monday, seeking to buy refined white sugar for shipment in 2006, they said. On Monday, exporters were offering to sell Thai 45 ICUMSA refined white sugar, considered consumer grade, at $38-43 over London prices for January-March 2006 shipment.
Buyers from Taiwan were bidding at $28-33 over London prices for January-March 2006 shipment, traders said. No deals were done, traders said.
ICUMSA measures the colour of sugar. The lower the ICUMSA level the higher the degree of whiteness. Thailand is one of Asia's major sugar exporters.
Its key buyers including Japan, South Korea, Taiwan, Indonesia and Malaysia. Thailand is a key exporter of sugar to Taiwan, supplying 67 percent of Taiwan's sugar last year, and Australia was number two with around 25 percent.
Taiwan imported 565,278 tonnes of sugar in 2004, up 26 percent over the previous year, according to government data.
Several vessels were due to arrive Thailand to load raw sugar for Malaysia, Japan and Indonesia, and white sugar for Bangladesh in coming weeks, shippers said.