Sugar Prices May Fall on Thailand Export Gain, Survey Shows

Sugar may fall as exports rise in Thailand, the world’s second-largest producer.

Six of 11 traders, analysts and brokers surveyed by Bloomberg News said that raw sugar traded in New York will fall. Four said it will rise, while one forecast little change. Before today, futures for July delivery dropped 6.2 percent this week to 20.86 cents a pound.

Six of 11 respondents said refined sugar on London’s NYSE Liffe exchange will drop, four said it will gain, and one expected little change. Through yesterday, the price lost 5.3 percent this week to $582.30 a metric ton.

Refined sugar’s premium over raw sweetener may narrow next week, according to five of 11 respondents. Four forecast the spread would widen, while two expected little change.

Bullish on raw sugar:     4      Bearish:  6      Neutral:  1
Bullish on refined sugar: 4      Bearish:  6      Neutral:  1
Widening refined premium: 4      Narrow:   5      Neutral:  2

 

(Source: http://www.bloomberg.com/news/2011-05-05/sugar-prices-may-fall-on-thailand-export-gain-survey-shows.html)