Japanese traders yesterday voiced scepticism about talk that India is importing Brazilian sugar to make up for a shortfall in its 1996-97 crop, adding that any Indian buying would have limited impact on Asias sugar market.
India was said to have bought six to nine cargoes of Brazilian raw sugar at $330-$335 per tonne C&F India, traders in Hong Kong said on Wednesday.
Although rumours of India buying Brazilian sugar have circulated in the sugar market, Im sceptical that India is now in a position to import sugar. In any case, the volume of buying is believed to be limited, a trader at a major Japanese trading house said.
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Another trade house trader echoed that view, saying it was too early for India to start making large-scale sugar purchases as its domestic stocks were still high. Japanese traders estimated Indias domestic sugar stocks at seven million to eight million tonnes.
The Asian sugar market remained quiet on Thursday, although Indonesia was
seeking to buy more sugar, traders said. Indonesia recently bought 70,000 to 75,000 tonnes of Brazilian raw sugar for nearby shipment, and is seeking more sugar for delivery next year, Tokyo traders said.
Thai raw sugar premiums for May-July 1998 delivery were quoted slightly firmer at 1.10 to 1.20 US cents per pound over New Yorks Coffee, Sugar and Cocoa Exchange futures on an FOB basis, against 1.00 to 1.05 US cents a week ago.
Sugar premiums for July-September 1998 delivery were quoted little changed at 1.35 to 1.45 US cents.
Traders said Thai raw sugar premiums are likely to be steady to firmer in the near term, as
Thai millers are not in a hurry to sell raw sugar amid expectations that the Thai sugar canecrop
for 1997-98 will fall sharply from the previous year due to a drought.
On the Tokyo Grain Exchange (TGE), raw sugar futures are expected to be steady to firmer next week, based on the view that the New York market has more room to rise.
Since the New York market has nearly finished its consolidation phase, the benchmark January contract on the Tokyo Grain Exchange may probe the upside to