Mr. Chalush Chinthammit, President Khon Kaen Sugar Industry Public Company Limited (KSL) revealed that the company expects the amount of sugarcane crushing in ’66, which will start the sugarcane crushing season from Nov. 65 to March ’66, will increase to 8.20 million. Tons of cane and sugar production of approximately 9 hundred thousand tons from the year 65 when the amount of cane crushed was 6.56 million tons cane, representing the amount of sugar production of about 6.9-7 hundred thousand tons, as a result of the climate that favors sugar cane.
While expecting sales volume in 66 will continue to grow. from the rising price of sugar in accordance with the rising cost Sugar prices are expected to be around 18 cents/pound, plus-minus, supported by energy prices, inflation and the Russian-Ukrainian war. Including tensions between the United States, China and Taiwan. At the same time, the world’s largest sugar producer and exporter like India, it is unclear whether the Indian government will export. And Vietnam’s demand is back in the market. There are about 1-2 million tons of sugar imported, which is considered a factor supporting sugar prices.
The negative factors that put pressure on sugar prices are the forecasted surplus in 66 near 2 million tonnes, an energy tax adjustment in Brazil. especially ethanol This will result in the price going down. and pulling sugar prices down near ethanol prices, economic growth and the trend of declining sugar consumption Including the strengthening of the dollar, the producer Sugar Currency weakened. In addition, the fund still holds a net selling position.
However, the company Thai Cane and Sugar Co., Ltd. (TCSC) has contracted to sell sugar in the year 66 to 50%, the price of sugar at about 20.20 cents / pound, with an average baht value of 34.80 baht / dollars, with sugar prices similar to those of the previous year. But the baht has improved by about 2 baht, resulting in better returns for sugar producers or sugar factories.
Mr. Chalush said that the sales volume in the second half of the year 65 is expected to grow continuously from the first half of the year. from the growing sugar cane and increased selling price The depreciation of the baht All of which are positive factors for the Company. while the ethanol business Agree that the first half of the year was not good. from raw materials increased And the situation did not cause the ethanol price to rise according to the cost. But in the second half of the year, the price is expected to gradually move up, which will benefit the performance of ethanol better than the first half of the year. or return to have a reasonably better profit This year’s performance should not be a concern.
The investment budget for the year 65, which will end Oct. 65, is placed at 300 million baht, but may not be used for less than the year 66, placed at 400 million baht. It is primarily an investment to increase efficiency. If there is any project that can return quickly, there may be additional investment.