The Black Sea ports are the entryway for the soft commodity from the world's second largest exporter of sugar, according to the Institute for Agricultural Market Studies. As many as 200,000 metric tons of raw sugar are being exported to the Black Sea, analyst Yevgeny Ivanov said. Ninety-thousand tons of raw sugar will follow during the remainder of the month.
"The Thai premium is usually much more expensive than the premium for sugar from Brazil, as the Far East is always in deficit," according to an email from Naim Beydoun, a broker at Swiss Sugar Brokers.
Ivanov said a sizable discount is the likely justification for Russian buyers' purchase of sugar from Thailand.
At 2 p.m. on Wednesday, sugar futures were down 2.54 percent, a 0.065 cent reduction to $2.497 per pound.
"This year the Thai crop is huge and premiums collapsed, becoming cheaper than Brazil," Beydoun's note states.
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