Sugar tender may be flat

Sugar tender may be flat

TOKYO (Reuters): A planned raw sugar tender by Indonesia is unlikely to have a significant impact on the Asian sugar market, since Indonesia is unlikely to buy Thai sugar, Japanese traders said on Friday.

Indonesia is due to hold a tender for 500,000 tons of raw sugar on Aug. 11.

Japanese traders said expected buying by the Philippines was more likely to push up Thai values in the short term.

"Considering the specifications for Indonesia's tender, the country is unlikely to buy raw sugar from Thailand," a trader at a leading trade house said.

More likely origins would be Brazil or Australia, they said.

"Expected buying by the Philippines would have a more direct impact on Thai raw sugar premiums. Premiums may edge up in the short term," another trader said.

In New York, CSCE sugar prices were largely steady at the close Thursday in subdued dealings, with market players reluctant in taking aggressive positions ahead of the Indonesian tender for 500,000 tons of raws next week.

Trade buying buoyed raws in early trade, with October sugar rising to the day's peak of 8.91 cents a lb.