The price of sugar fell on Monday, but rising demand and slumping domestic output in China could cause a turnaround in sugar futures later on in the year. A survey compiled by Bloomberg showed that China, the world’s third largest producer of the sweetener, could import as much as 1.5 million tons of sugar this year, up from 1.06 million tons last year.
However, said Piromsak Sasunee, the chief executive officer of Thai Sugar Trading Corp., “China is likely to step into the market when the sugar price declines, not at the current level. Purchases will help support the market.”
Raw No. 11 sugar futures fell 2.15 percent to 19.35 cents per pound on the IntercontinentalExchange.
China has been growing less sugar recently, and demand has been rising as Chinese consumers buy more cakes and soft drinks. Raw-sugar output fell 16 percent to 13.3 million tons in the 2008-2009 growing year, according to the U.S. Department of Agriculture, and slipped again to 11.6 million tons in the 2009-2010 season. Demand, on the other hand, is up to 14.9 million tons.
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