The premium on Thai raw sugar rose slightly on Monday, reflecting better demand as importers kept buying despite firm prices. The premium was quoted at 162 points over New York prices for March shipment, up slightly from 160 points quoted in January. "Buyers, especially in Asia are still buying despite high prices," a trader at a major Thai miller said.
"They might have to replenish their falling stocks." The New York raw sugar March delivery contract was little changed at 12.38 cents per lb, but dealers said they expected prices to rise after breaking through the psychological 12 cents resistance.
Several international trading houses were seeking raw sugar and refined sugar from millers for March shipment to custmers mostly in Asia. Around 30,000 tonnes of Thai raw sugar was shipped to Indonesia, the biggest Southeast Asian buyer which bought 450,000 tonnes of white sugar and 280,000 tonnes of raw sugar in 2007. Another 30,000 tonnes was sold to Japan.
Around 12,000 tonnes of white sugar was sold to neighbouring Cambodia, traders said. The premium on Thai raw sugar was expected to remain firm this month as demand remained strong, traders said. "International trading houses keep buying both raw sugar and refined sugar and I think millers would have sold up to 50 percent of their capacity in advance," a trader at another big Thai miller said.