Indian sugar mills association

Sugar up on signs of Chinese d

Date:	31 Oct 2011

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News ID:	630

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Sugar advanced in London and New York on signs Chinese demand is rising as the harvest in top global producer Brazil winds down and the crop in Thailand may be delayed due to floods. Coffee slid.

Sugar imports into China, the second-largest consumer, will climb 20 percent in 2011-12 as consumption outpaces production, according to Morgan Stanley. Brazilian industry group Unica said this week that 46 mills had closed for the season by Oct. 15. Floods in Thailand, the second-largest exporter, may delay the harvest by two or three weeks, Thai Sugar Trading Corp., the nations biggest shipper, said

. “Demand has been friendly with destination buying helping prices,” said Keith Flury, an analyst at Rabobank International in London. “It is a function of expectations Brazilian supply is likely to taper off while the Thai crush may be delayed,” he said, referring to rising prices.

White, or refined, sugar for December delivery rose $1.10, or 0.2 percent, to $716 a metric ton by 10:14 a.m. on NYSE Liffe in London. Raw sugar for March delivery rose 0.19 cent, or 0.7 percent, to 27.05 cents a pound on ICE Futures U.S. in New York. The Standard & Poors GSCI index of 24 raw materials fell as much as 0.5 percent.

About 20 percent of the all the sugar waiting to be loaded at ports in Brazil will be shipped to China and to Iran, data from Williams Servicos Maritimos Ltda showed.

Vessels heading to China will load 172,750 tons, while 111,800 tons will head to Iran, data from the shipping agency showed. Ships were waiting at the ports of Recife, Suape, Maceio, Vitoria, Santos and Paranagua yesterday to load 1.39 million tons of the sweetener, the data showed.

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