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."
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
July 3, 2017
Green Pool highlighted the threat to sugar consumption from the likes of health concerns and rival sweeteners as it raised by 837,000 tonnes its forecast for the looming world sugar production surplus. The Australia-based sugar consultancy revised up to 5.55m tonnes its forecast for the global output surplus in 2017-18, taking it to the largest since 2013-14.Read More
May 24, 2017
It’s not this year’s price crash that haunts the $150 billion sugar industry. It’s the fear of worse to come. Raw sugar’s 16 percent drop ranks it bottom of the 22 raw materials on the Bloomberg Commodity Index. Shocks to demand in top consumer India and prospects of more European supply are helping shift the market to a surplus, hurting prices. Yet beyond such market dampeners, hang darker clouds. After decades of stable demand growth, almost doubling per person since 1960, the world is heading for a tipping point as shoppers turn against the cola and candy blamed for an obesity epidemic in the rich world. At the same time, sugar has to compete with cheap syrups increasingly used in processed food. "Growth is not what it’s been," Tom McNeill, managing director of Green Pool, said in an interview. "There is undoubtedly a move by global bottlers and by a lot of global food manufacturers to reduce the sugar content in their products."Read More
May 24, 2017
The "war on sugar" being waged by governments and consumers to combat public health emergencies like diabetes is slowing growth in global demand, which along with other factors could signal a fundamental shift in consumption ahead. Consumption may grow at its slowest pace in seven years in 2017/18, according to analyst group Platts Kingsman. It forecasts a rise of 1.04 percent, nearly half the average growth of about 2 percent per year over the last decade. "Consumption is generally stagnating in developed countries," Tom McNeill, director at commodity analyst group Green Pool, told Reuters.Read More
May 9, 2017
Global sugar exports will exceed demand this season and the next as India brings in less than expected and the European Union boosts output, according to Tropical Research Services, which advises hedge funds. Exports will beat import demand every quarter through September 2018, TRS estimates. The trade-flow surplus will total 398,000 metric tons in the third quarter, reversing a previous forecast for a shortage of more than double that amount, said Sean Diffley, the firm’s head of sugar and ethanol research.Read More
May 5, 2017
HOME COMMODITIES COMPANIES MARKETS OPINION DATA CALENDAR SUBSCRIBE Thurs 11th May 2017 PRINTABLE VERSION EMAIL TO A FRIEND RSS FEEDS 13:57 UK, 5th May 2017, by William Clarke Green Pool trims sugar deficit forecast, a touch... Sugar analyst Green Pool only slightly trimmed its forecast for a hefty sugar surplus next season, as consumption grows only sluggishly despite easing sugar prices. "Consumption is a major issue for sugar, with global consumption growing only slowly," Green Pool said. "Some growth is being seen in developing countries, while consumption is actually falling in some developed countries."Read More