THAILAND: Total of 47,851 tonnes of HiPol and 28,482 tonnes of J-Spec sold at tender
Published: 03/13/2018, 2:46:02 PM
The sixth Thai Quota B tender for the 2017/18 (October-September) season took place Tuesday, with a total of 47,851 tonnes of HiPol raw sugar and 28,482 tonnes of J-Spec awarded, market sources said, according to Platts.
Through the six tenders, Thai Cane and Sugar Corporation has managed to auction off the entire 400,000 tonnes allocated every year under the Quota B auction process for raw exports. The sixth tender awarded 76,333 tonnes or 19% of the total allocation.
After this tender was concluded, the total amount awarded for the July-September shipment was 133,333 tonnes, comprising 95,851 tonnes of HiPol and 37,482 tonnes of J-Spec.
Alvean was awarded 12,000 tonnes of J-Spec for shipping from July 1 to September 15 at 72 points above July (N) New York No.11 raw sugar futures.
Bunge was awarded the remaining 16,482 tonnes of J-Spec for shipping from July 1 to September 15 at a 72 points premium to July (N) New York No.11 raw sugar futures.
The quota B tender awarded price for J-Spec was lower than offers heard in the market at July (N) plus 95 points for July 1 to September 15 shipment.
Bunge was awarded 47,851 tonnes of HiPol for shipping July 1 to September 15 at 58 points above July (N) New York No.11 raw sugar futures.
The Thai HiPol quota B tender award prices pushed down premiums for Platts Thai HiPol forward curve assessments Tuesday.
The Thai HiPol July-September 15 assessment was down 6 points Tuesday to 58 points over July (N), in line with the awarded price.
The Thai cash premiums have been under pressure due to a bumper Thai crop estimate. From October 1, 2017 to March 8, 2018 sugar production in Thailand rose 21% year on year to 9.9 million tonnes, while sugar production from cane crush was 19% higher at 92.6 million tonnes during the same period, according to data published by the Office of the Cane and Sugar Board.
In Thailand, production of raw sugar over October 1-March 8 was 7.4 million tonnes, up a steep 27% year on year, while white sugar production grew just 5% to 2.4 million tonnes. This extends the trend of higher proportion of raw sugar than in-season white sugar being produced this season compared with last season. The raw/white mix of 75/25 was much higher than 70/30 a year earlier, according to S&P Global Analytics data.
The Thai Quota B tender, which covers a 400,000 tonnes raw sugar contract for the year, is held by several trade houses and sold on behalf of the Thai Cane and Sugar Corporation, which has overall responsibility for pricing and selling raw sugar under this quota.
Half of the amount is allocated to international sugar brokers, and the other half to local millers for export.