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Queensland Sugar Limited predicts record low

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Queensland Sugar Limited has warned Australia’s sugar crop may be the smallest for 20 years, affecting exports accordingly. Recent rainfall exceeding annual averages for key sugar cane growing regions by 200-400 percent has interrupted the harvest, QSL chief executive and managing director Neil Taylor said. "The Australian sugar crush is usually drawing to a close at this time but due to the extreme rainfall this season it is only around 75 percent complete. As a result Australian sugar exports could fall by 15-20 percent compared to last season." Taylor said QSL has downgraded its forecasted exports from 2.9-3 million tonnes to 2.6 but claims the company’s pooled system has enabled it to meet contract orders. "Given that most of the industry chooses to use QSL to store, market and sell its sugar we are able to help mitigate some of the costs that would otherwise have occurred." He also said there was a silver lining for suppliers: "Forward prices for next season are nearing $550 a metric tonne and we see the seasonal pool for next season opening at around these levels. If the current crop issues around the world remain negative then there could be further upside from there."

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