By David Brough
LONDON (Reuters) - Indian refineries selling sugar are benefiting from tight Thai supplies and longer shipping times from Brazil to key markets, European traders said on Wednesday.
Availability of high quality, 45-ICUMSA Thai white sugar is scarce, sapped by recent heavy Chinese buying, before the new Thai cane harvest comes onstream around January.
Traders spoke of buying interest for Thai 45-ICUMSA containerised sugar for November shipment at around $45 over December white sugar futures, while refined sugar from Indian refineries was at $20-30 over December.
ICE December white sugar futures rose $2.30 or 0.60 percent to $383.70 a tonne on Wednesday.
One trade source said an offer of Thai 45-ICUMSA containerised white sugar was heard this week at $55 over December.
Also Read
Brazilian 45-ICUMSA containerised sugar was quoted at $7-8 over December futures, with freight from Brazil to Far Eastern markets at around $25-30 per tonne.
Longer shipping times from Brazil could give a competitive edge to supplies from Indian refineries and Thailand offered to leading regional markets, traders said.
Some Indian port refineries import raw sugar from Brazil, refine and re-export it in so-called "tolling" operations.
White sugar exports from Indian refineries have the potential to compete to markets in the Red Sea, East Africa and the Indian Ocean, traders said.
The pace of Chinese demand for high quality Thai white sugar is believed to have slowed down as front-month white sugar futures surged to $395.50 per tonne, a 7-1/2-month high, on Monday.
Indian mills are looking to boost refined sugar exports in order to raise cash for the coming crushing season, traders said.
(Editing by William Hardy; Editing by xx xx)