Thailand Gives Sugar Bears More to Cheer as Output Keeps Growing
- Thai production to reach record on bigger area, yields: survey
- Bigger crop has helped send raw sugar prices to a two-year low
A worker displays raw sugar for a photograph at a mill in Saraburi province, north of Bangkok, Thailand, on Wednesday, May 9, 2012.
Photographer: Dario Pignatelli/Bloomberg
This article is for subscribers only.
Thailand’s expanding sugar output is surprising traders and giving more ammunition to bears betting that a global oversupply will further weigh on prices.
Millers in the world’s No. 2 exporter have already processed about a fifth more cane than a year earlier and the Office of the Cane and Sugar Board says crushing will likely last longer than usual. Thai output will reach a record in the 2017-18 season as farmers expanded plantings and favorable weather improved yields, according to a Bloomberg Survey of 11 traders and analysts.