Thai sugar premiums held steady Wednesday after a recent drop in futures prices prompted bargain hunting, but talks about another bumper crop in Thailand weighed on the physical market, dealers said.
The widely traded high polarisation, or hipol Thai raw sugar, for March to May 2012 delivery was offered at premiums of 70 points to New York's front-month contract, October, with bids at 45 to 50 points.
Thai raws for prompt shipment were quoted at much higher premiums of between 170 and 230 points, with bids at 180 points.
"There's been a lot of contention regarding the size of the Thai crop for next year. I guess the latest forecast is ridiculously low," said a dealer in Singapore. "The premiums out there reflect the expectations that there will be a lot of sugar, particularly raws. With lower prices, there's been physical demand around."