Thailand’s Sugar Outlook Worsens as Yields Slide After Dry Spell
- Industry group cuts top end of output estimate by 500,000 tons
- Yields have tumbled to the lowest level in at least 13 years
Farmers in a sugar cane field in Kanchanaburi in Oct. 2023. Millers in Thailand are seeing the lowest yield from crushed cane in at least 13 years, according to government data.
Photographer: Valeria Mongelli/BloombergThis article is for subscribers only.
Thailand’s sugar output is set to be even lower than expected this season after dry weather impacted plant growth, which will squeeze global supply and could extend a rally in benchmark futures.
Industry group Thai Sugar Millers Corp. has trimmed the top end of its forecast production range by 500,000 tons to 7.5 million tons for 2023-24, according to Director Rangsit Hiangrat. Should output meet that estimate, it would be a third lower than what was produced in the previous season.