SUGAR NEWS

SINGAPORE (VBBUERO)--Asian sugar prices fell in the week to Tuesday under the weight of losses in ICE futures, but
traders said the absence of supply from India in the global market is likely to continue supporting Thai premiums.
The ICE May 2009 sugar contract settled at 12.75 U.S. cents a pound Monday, down from 12.99 cents/lb a week ago.
Raw sugar premiums in Thailand, Asia's largest exporter, were little changed compared with a week ago, around 70
points to the ICE May contract.
As India this year is no longer a major exporter, traders in Thailand said they are receiving more inquiries from
customers who used to buy from India.
Given the relatively small differentials between raw and refined sugar exports now, buyers prefer to order refined
sugar from Thailand, said an executive in a major commodities trading house.
Industry participants meanwhile are concerned about the country's production this year due to adverse weather.
"People are holding and reluctant to sell at the moment, as they suspect the crushing will end earlier and the output
will fall," said a trader in Bangkok.
Prasert Tapaneeyangkul, secretary-general of the Office of the Cane and Sugar Board, told Dow Jones Newswires that
Thailand is likely to complete its sugar crushing for the 2008-09 crop year earlier than usual because of the current
dry weather.
He estimated that total cane production is likely to reach 70 metric million tons, which translates to around 7
million tons of sugar, down from 73 million tons in the last crop year.
In India, prices rose during the week on firm domestic demand and dwindling supplies in the local market.
Daily arrivals in local markets have fallen to about 7,000 to 7,500 tons from about 10,000 tons last week.
In Mumbai's Vashi market, S-30 grade sugar was quoted at INR21,200-INR21,400/ton, up from INR21,000-INR21,200/ton last
week.