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."
February 23, 2018
Global sugar prices have tumbled about 33 percent in the past year on a global surplus as production increases in Europe and India. ISMA last month raised its 2017-18 sugar output estimate 4 percent to 26.1 million tons, the highest in three years. Green Pool Commodity Specialists this week forecast Indian production at 28.1 million tons, with expectations of an equal or better crop next season.Read More
February 6, 2018
Green Pool hinted at downbeat prospects for sugar prices as it raised its estimate for the production surplus for this season, forecast another stockbuild in 2018-19, and said a third one could be in the offing.Read More
January 3, 2018
March raw sugar settled down 0.02 cent, or 0.13 percent, at 15.31 cents per lb after peaking at 15.37 cents, its highest since Nov. 28. But focus on bearish fundamentals returned after closely-watched commodity analyst Green Pool on Wednesday raised its projections of a global surplus in 2017/18 to 10.43 million tonnes, up from a forecast of 9.8 million. [nL8N1OY1Q7Read More
January 3, 2018
Green Pool hinted at the potential for sugar price weakness as it lifted to a 15-year high its forecast for the extent of supplies of the sweetener, citing strong production prospects in the likes of India and Thailand. The Australian-based analysis group raised by 629,000 tonnes to 10.43m tonnes its forecast for the world sugar production surplus in 2017-18 - while reducing by 664,000 tonnes to 1.11m tonnes its estimate for the output shortfall last season.Read More
November 2, 2017
The global sugar market is poised for a surplus of 9.80 million tonnes 2017/18, Australia-based analyst Green Pool said on Tuesday, amid stronger production and sluggish consumption growth.Read More
November 1, 2017
World sugar dynamics are the “worst” - for bulls – in at least 12 years, Green Pool said, hiking its estimate of the global output surplus, and hinting at the potential for further growth in stocks “into 2018-19 and perhaps beyond”.Read More
August 24, 2017
The global sugar surplus is expanding as Brazil, Thailand and the European Union drive world production to record, according to Green Pool Commodity Specialists. Supplies will outpace demand by 7.1 million metric tons in the 2017-18 season that starts in October in most countries, a 29 percent increase from a May forecast.Read More