Sugar production in Thailand, the world’s largest exporter after Brazil, may climb by 10 percent to a record in the season from November as yields increase, according to Thai Sugar Millers Corp. Futures declined.
Output will expand to 11 million metric tons, crushed from the biggest-ever cane harvest of 105 million tons, Sirivuth Siamphakdee, a spokesman for the Bangkok-based company that represents the country’s 50 mills, said in an interview. About 70 percent of output will be exported, he said, giving the millers’ first estimates for coming year.
Increased supplies will add to a global surplus that pushed futures to a three-year low yesterday, helping to curb global food costs. A weakening Brazilian real has boosted speculation that the biggest grower will raise exports, while a Bloomberg survey this week showed that the Indian crop will top demand after the best start to the monsoon in more than a decade.
“The surplus expected for 13-14 will continue to put pressure on prices,” said Tom McNeill, a director at Brisbane, Australia-based researcher Green Pool Commodity Specialists Pty. “The market is strongly signaling to producers to reduce production, not to increase.”
Futures are heading for a third year of declines, the worst run since 1992, and sugar is the worst performer after coffee and corn on the Standard & Poor’s GSCI Index of raw materials over the past 12 months. Prices that rose to 36.08 cents in 2011 spurred farmers from Brazil toChina to boost planting.