Thai sugar stocks edged higher amid rising sugar prices that recently reached 11-year high with a potential to extend gains further.
As of 11:04 BKK time on Friday, the share price of Khon Kaen Sugar Industry Public Company Limited (SET: KSL) rose THB 0.14 or 4.14% to THB 3.52 per share.
Buriram Sugar Public Company Limited (SET: BRR) jumped THB 0.40 or 5.93% to THB 7.15 per share.
Khonburi Sugar Public Company Limited (SET: KBS) increased THB 0.25 or 3.94% to THB 6.60 per share.
Kaset Thai International Sugar Corporation Public Company Limited (SET: KTIS) gained THB 0.04 or 1.00% to THB 4.06 per share.
Raw sugar futures (ICE SB1) rose to a 11-year high at 25.25 cents a pound amid forecast of shortage in global supply due to bad weather, while rising costs could be passed through to consumers.
In early April, the All India Sugar Trade Association cut its sugar production estimates by nearly 3%, citing unseasonal rainfall in Maharashtra, which accounts for more than one third of sugar output in India.
India is the world’s second largest sugar producer behind Brazil.
”Prices are so high right now that even if prices cool substantially when the Brazilian harvest hits the market, prices could still be considered elevated above historical levels,” Fitch Solutions’ commodities analyst Matthew Biggin said.
