Thai sugar exports fell 24% on the month in July, which traders attributed to tight supply which forced destination buyers to seek alternative, more competitively priced origins.
It is reported by S&P Global Platts.
Total sugar exports from Thailand in July were 428,174 tonnes — comprising 204,761 tonnes of raw sugar, 26,908 tonnes of low-quality whites and 196,505 tonnes of high-quality whites — compared with 559,938 tonnes in June, data released Aug. 25 from the Thai Sugar Millers Corp. showed.
Raw sugar exports between January and July were down almost 20% year on year at 2,7 million tonnes.
While Indonesian imports of Thai raw sugar over January-July were little changed year on year at 1,94 million tonnes, traders said Thai export sales into Indonesia would likely fall further in the third and fourth quarters.
Indonesia is the top importer of Thai raw sugar and typically accounts for 60-70% of Thailand's total raw-sugar exports.
Due to a small Thai crop that has driven cash premiums to high levels, Indonesian buyers have switched to more competitively priced Indian and Brazilian raw sugar.
According to a shipment report, Indonesia imported 404,947 tonnes of bulk raw sugar from India between Jan. 1 and Aug. 6.
Thai January-July white sugar exports fell by 6% year on year, to 1,8 million tonnes, according to TSMC data.
July shipments to Vietnam slumped to 61,625 tonnes from 89,850 tonnes in June and 101,530 tonnes in May.
The drop in exports to Vietnam was mainly attributed to a drop in domestic prices caused by a large import program in the first half of 2020.
«Regional demand for whites will be weak in Q3 as the Philippines and Vietnam are importing less. We are also at the tail end of the Thai crop so there is not much left to be exported», — a Singapore-based trader said.