White sugar’s premium to the raw variety widened to the highest in more than a year as purchases by Pakistan boosted demand for the refined sweetener.
Futures of white sugar rose as much as 2.6% to US$490 (RM2,070.49) a tonne in London, lifting the premium to US$125 a tonne, the highest since July 2024, according to figures compiled by Bloomberg.
The price differential is a key factor in determining whether refiners process raw sugar, with levels above US$100 deemed profitable.
The market is scrutinising the volumes that Pakistan is committing to buy, after the country tendered for 200,000 tonnes of refined white sugar last week. That comes as white sugar supplies are expected to tighten from the fourth quarter and into next year, according to Claudiu Covrig, lead analyst at Covrig Analytics.
“Pakistan remains a major driver of whites’ demand, continuously pushing white premium higher,” said Covrig. “The December contract is starting to look bullish amid scarce supply.”
