Czapp Explains: Thailand’s White Sugar Industry

Starch is composed of chains of glucose molecules. Some of these chains are straight (amylose), which make up 20–30% of the starch molecule, and some are branched (amylopectin), which make up 70%–80% of the starch molecule.

Welcome to the third and final instalment of Czapp’s course on the futures markets.

In this final part of this series, we will look into the futures contracts used to trade sugar globally.

Sugar comes from two crops: sugar cane (which accounts for 80% of total sugar production) and sugar beet (which accounts for the remaining 20%). Both crops produce sucrose and there is is no chemical difference between the end product, although beets only make high quality white sugar whereas cane can make a range of sugars from low-grade raws all the way to high quality whites. Cane and beet are grown in different climates across the globe.

• Re-export refiners are important swing producers in the sugar market. 
• Freight and energy costs are key factors affecting their profitability. 
• · In this explainer we explain how they work.