The global sugar price hits its highest level in four yearshttp://www.abc.net.au/news/2016-06-30/global-sugar-price-hits-four-year-high/7556734
July 01, 2016 at 12:13 PM
The global sugar price continues its strong rally this year, jumping 5 per cent in overnight trading in New York.
It is currently buying 20.82 US cents a pound, its highest level since August 2012.
A worldwide supply shortage plus a slow harvest in Brazil has seen sugar attract increased interest from investors.
"These levels at in excess of 20.5 cents a pound are well over the cost of production for virtually all global producers," he said.
"I think we've still got a little way for this strength in the market and these deficits, whether they can be resolved before the start of 2017 remains to be seen."
Growers welcome spike, but not all good news
For Wilmar growers still without contracts, it has been frustrating to watch the continuous rise in sugar prices.
"It is very disappointing not to be able to forward sell with any certainty at the moment," grower Peter Hackett said.
"There are some good prices out there and it would be great for all of the industry to be able to take advantage of that.
"Banks like to see - in this era where we have been able to forward price - that we have locked something in for a reasonable price."
Mackay region cane grower Greg Plath supplies Mackay Sugar and already has contracts in place.
He said it had been some time since he had seen such high prices.
"It has been a long time, I have seen it at 20 cents which was five or six years ago but at the time we had an exchange rate of about $1.10, which really spoilt the party," Mr Plath said.
"This time we have an exchange rate in the 70s so that pushes the Australian dollar up."
Mr Plath said while the price spike was good, the full benefits would not be felt this year.
"For us, for this year's crop, a considerable amount of our sugar is already priced, so we won't be able to take full advantage of those high prices."
July 1, 2016
The world is running short on sugar and the tighter supplies are driving prices to the highest in almost four years.Read More
July 1, 2016
Posted Thu at 11:54am Sugar being stored at one of Queensland Sugar Limited's bulk terminals PHOTO: The global sugar price has hit a four year high overnight. (Supplied by Queensland Sugar Limited) MAP: Mackay 4740 The global sugar price continues its strong rally this year, jumping 5 per cent in overnight trading in New York. It is currently buying 20.82 US cents a pound, its highest level since August 2012. A worldwide supply shortage plus a slow harvest in Brazil has seen sugar attract increased interest from investors.Read More
June 14, 2016
* Harvest weather returns to Brazil's sugar regions * Weak pound supports London cocoa By David Brough LONDON, June 13 (Reuters) - Raw sugar futures on ICE held steady on Monday near a 2-1/2-year peak with dealers focused on improving harvest weather in Brazil, while arabica coffee was little changed as worries over frost risks eased. A weakening pound, pressured by concerns over the coming British vote on EU membership, gave support to London cocoa. Raw sugar steadied, with a focus on improving conditions for the cane crush in centre-south Brazil. "The weather across Brazil's centre-south has improved markedly over the past few days as dry weather returns across the region allowing the crush to push into top gear again and port loadings to get back to normal," a broker said. Dealers noted that speculators again boosted the record net long position in raw sugar contracts on ICE they have held since early May in the week ended June 7, according to U.S. data.Read More
June 7, 2016
Marvin G Perez Fabiana Batista Megan Durisin This year’s rebound in oil prices has an unlikely victim: the dessert plate. To understand why, look no further than Usina Batatais SA, a sugar-cane processor in Sao Paulo. Enticing fuel margins mean the company is using a bigger cane crop to produce more ethanol, while keeping its raw sugar output unchanged. Even after sugar prices surged recently, “there’s no time and cane anymore” to make a switch, said Bernardo Biagi, Batatais’ president.Read More
June 2, 2016
* Coming up: Brazil Unica cane crush data due at 1300 GMT * NY July/September cocoa spread narrows By David Brough and Nigel Hunt LONDON, June 1 (Reuters) - Raw sugar futures on ICE fell on Wednesday before Brazilian cane data expected to show a strong crush for the first half of May, while cocoa eased in spread-related dealings. Coffee steadied, supported by concerns over a poor Brazilian robusta (conillon) harvest. Raw sugar dipped, moving away from Tuesday's 23-month peak, supported by a shift to a global deficit. Dealers awaited Brazilian data from cane industry group Unica at 1300 GMT, expected to show a rapid crush in early May. "We expect that the data will show a continued strong harvest in the first half of May. Our guess is that it will be close to 40 million tonnes of cane," said Tom McNeill, director of Green Pool Commodities.Read More
May 16, 2016
A realisation of a global sugar deficit, coupled with political turmoil in Brazil, has seen the sweet commodity continue to rally in world trade. Overnight, the July supply contract for raw sugar closed at 16.98 US cents a pound, down slightly from its peak during trade of 17 cents.Read More
April 1, 2016
Drought has hit sugar production in India, Thailand and Brazil for this season and next. Chinese production has already been downgraded by Green Pool Commodities from 9.5 to 9.2 million metric tonnes in 2016.Read More
March 31, 2016
Balrampur Chini Mills Ltd., the second-biggest Indian sugar producer, expects sweetener prices to extend a rally as production heads for a second year of decline. Shares of sugar mills climbed in Mumbai. Production in India will drop 5 percent to 7 percent in the year beginning Oct. 1 from about 25.5 million tons in 2015-16, the company said in an exchange filing. “Considering the demand-supply scenario, the trend is expected to be firm for sugar prices for 2016-17,” Balrampur said.Read More
March 24, 2016
A global shortage of sugar will be larger than previously expected in the next season as El Nino-induced droughts hurt crops in Asia, Green Pool Commodity Specialists said. World consumption will exceed production by 4.95 million metric tons of raw sugar in the 2016-17 season, the Brisbane, Australia-based researcher said in an e-mailed report on Wednesday. That’s 19 percent more than its January forecast. The world is heading for a second straight annual deficit, following half a decade of surpluses.Read More
February 4, 2016
Sugar is one of the few bright lights on the global commodity stage at the moment as demand outstrips supply for the first time in five years. Globally, the crop is forecast to fall into deficit, down by 5.2 million tonnes of sugar on last season to 177.5 million tonnes a deficit of 4.1 million tonnes.Read More