Thai white sugar premiums held steady this week but could strengthen on rising demand before the Muslim fasting month of Ramazan, while China and Malaysia are seen chasing raw sugar from Brazil, dealers said on Tuesday. Thai whites were offered at premiums of $25 to $30 to front-month August contract, unchanged from last week.
A rise in the premiums between London white futures and New York raws to more than $100 also indicates strong demand for whites, they said. "The one thing that stands out in the gloom is August whites, with the premium at $133 a tonne on Friday, up from $109.50 on May 1, or an increase of $23.50 over the month," said Tom McNeill, director of Green Pool, a commodities analyst based in Brisbane.
"White sugar has seen strength mid-year in the past 2-3 years, and the surprising thing is that would still occur in a year with a large surplus coming on line." Dealers noted buying interest from the Middle East before Ramazan starts in July, when fasting in the day is followed by feasting in the evening, as refiners ramp up production to exploit the favourable whites-over-raw premiums - a measure of refining profitability.