Sugar falls on RI concerns

Sugar falls on RI concerns

LONDON (Bloomberg): Sugar fell yesterday amid speculation that Indonesia, Asia's third-biggest sugar importer, would not need to buy more sugar in the coming weeks.

White, or refined, sugar for October delivery fell as much as US$2, or 0.8 percent, to $245.20 a metric ton on the London International Futures and Options Exchange, its lowest price since June 10.

Beddu Amang, head of the Indonesian state logistics agency Bulog, said the country needs to buy about 1 million metric tons of sugar in 1998.

Bulog has purchased 1.16 million metric tons since July. Increased Asian demand has helped sugar rise in recent weeks from its lowest in 11 years, reached in New York in June.

Prices also fell ahead of the announcement of the European Union's weekly export tender this afternoon. Last week, the EU sugar management committee agreed to export 40,000 metric tons of sugar at a lower export subsidy than the previous week.

London-based sugar traders said they expect the committee to approve 50,000 metric tons of sugar exports yesterday.