Thailand's sugar supply forecast to be positive this year

Published 2024년 9월 6일

Tridge summary

Thailand's Office of the Cane and Sugar Board has reported a decrease in sugarcane output due to drought, although the country is confident it will have enough sugar to meet domestic demand. The country's sugarcane output reached 82.1 million tons in the 2023/24 crop year, producing 8.8 million tons of sugar, with plans to increase output to 90-100 million tons in the 2024/25 crop year. Part of the sugarcane will be exported due to surplus. Global cane sugar supply has been reduced by drought, leading to a 30% increase in world market prices, with Brazil reducing sugarcane ethanol production to increase sugar production. Citi Commodities expects sugar prices to reach 20 US cents/lb in the coming months.

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Original content

According to a reporter from the Vietnam News Agency in Thailand, the Office of the Cane and Sugar Board of Thailand (OCSB) said that sugarcane output in this country and some other countries has decreased due to drought. However, officials here are still confident that there will be enough sugar to meet domestic demand. In the 2023/24 crop year, Thailand's sugarcane output reached 82.1 million tons, producing 8.8 million tons of sugar. However, in the first half of 2024, the Thai market only consumed 1.27 million tons of sugar. Therefore, part of the sugarcane will be exported. Khon Kaen Sugar Industry Plc (KSL), a leading sugarcane producer in Thailand with 57 factories, expects sugarcane output in the 2024/25 crop year to increase to 90-100 million tons, thereby raising sugar output to 9-10 million tons. Sugar prices in Thailand, controlled by the Ministry of Commerce, are currently ranging from 27-28 baht (0.78-0.81 USD)/kg. Recently, drought in many countries has reduced ...

Source: Vinanet