Indiana Grain Company, LLC

Posted: 03/07/10

By: tomgrisafi

We at Indiana Grain are learning that Thailand may do its part to contribute to one of the largest sugar harvests on record.

According to multiple published reports, Thailand may harvest a record sugar crop next year after farmers boosted planting, enabling them to benefit from global prices set to advance to an all-time high - that's from the Thai Sugar Millers Corp.

Output from the world’s second-largest exporter may total 7.8 million metric tons in the year from November, said Vibul Panitvong, executive chairman of the company that groups Thailand’s 46 millers. Raw-sugar prices may reach 40 cents next year on low global inventories and strong demand, Vibul said.

A surge in prices would benefit exporters including Brazil, the largest shipper, while boosting costs for buyers such as India, the world’s second most-populous nation. The South Asian country will probably import about 4 million tons next year after purchasing as much as 7 million tons this year, Vibul said.

Thailand’s “cane production is likely to reach a record” next year, beating the 74 million tons recorded in the 2002-2003 crop year, Vibul said in an interview.

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