Indiana Grain Company, LLC

Posted: 10/11/11

By: tomgrisafi

White sugar’s premium over raw sweetener may fall as much as 39 percent by the end of the year as European, Indian, Thai and Central American production surges, according to Swiss Sugar Brokers.

This was reported Tuesday from Bloomberg.

White, or refined, sugar for March delivery on NYSE Liffe in London was $81.7623 a metric ton more expensive by 2:37 p.m. local time than the March raw-sugar contract on ICE Futures U.S. in New York, data on Bloomberg showed. The premium may fall to $50 to $60 a ton by the end of the year, Naim Beydoun, a broker at Rolle, Switzerland-based Swiss Sugar Brokers, said by e-mail in response to questions today.

“The white premium is already showing some sign of fatigue hanging close to the $100 level and will ultimately be weighed not only from the Indian supply, but also from the EU export quotas, Russia, Thai whites and Centrals,” Beydoun wrote in a report e-mailed yesterday.

Global sugar output will exceed demand by 4.2 million tons in the marketing year that started this month, the International Sugar Organization estimated. Raw-sugar exports will likely fall 782,000 tons to 31.3 million tons as shipments of refined sugar gain 1.1 million tons to 20.9 million tons, it said.

Source: Bloomberg

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