World sugar price climb a relief for growers

Canegrowers is ‘cautiously optimistic’ about the upswing in prices

GUTTED: Canegrowers Mackay chairman Kevin Borg is not happy with the result of the reef bill

THE world sugar price has climbed to about $A435 a tonne in recent weeks amid analysts' predictions the market is moving into a more "neutral" phase.

A full season price of $450 was last seen in early December 2017, according to Queensland Sugar Limited.

By comparison, this time last year, the 2020 season price was $410.

QSL trading manager Matthew Page said the high world price had provided a positive boost for the industry.

"Coming off a couple of years of oversupply where prices have been well below $400 per tonne, this is beneficial," Mr Page said.

"It means growers will be making money rather than just keeping their heads above water."

He said the price had been driven by a constructive fundamental outlook in terms of supply, a transition from a net sold position to a net bought position in sugar and macro Iranian geopolitics.

Grower organisation Canegrowers said it was cautiously optimistic about the New Year price upswing.

The organisation's chief executive, Dan Galligan, said a persistent dry period remained troubling for growers.

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POSITIVE OUTLOOK: QSL trading manager Matthew Page

"While we are feeling some optimism about the relatively better prices, serious concerns remain about the dry conditions across many growing areas which are inhibiting the development of the 2020 crop," Mr Galligan said.

"We are all hoping the wet season develops and delivers this year to give plant growth a boost before harvest plans are finalised in May."

Canegrowers called on growers to keep track of sugar prices through its marketing information service.

"With forward prices also moving to some of their highest levels for a year, it's important growers keep themselves up to date on what's happening and, very importantly, to be aware of the various pricing options," Mr Galligan said.

"That's why we launched the Canegrowers marketing information service last year with a series of education workshops through sugarcane regions for members and are continuing to provide monthly market updates online."

Boost of positivity for struggling sugar industry

PLANE Creek cane grower Kevin Borg is one of many rejoicing over the upswing in the world sugar price.

The prompt price for sugar has climbed to about $A435/tonne over the past few weeks.

But while Mr Borg described the pricing as "good news" for the region, the Canegrowers Mackay chairman cautioned growers to keep it in perspective.

"The Mackay region has had some good rain around the Christmas period, but we're still a long way from having a good crop for 2020," he said.

"While the good price might be there, we need the cane (produced) to take advantage of those prices."

GUTTED: Canegrowers Mackay chairman Kevin Borg is not happy with the result of the reef bill

 

The Mackay region experienced decent rainfall recently brought on by some significant storms, but Mr Borg said some southern areas of the Plane Creek mill area received less in their rain gauges than others.

"The crop is behind where it should be," he said.

"Cane is fairly resilient and it will come back, but that extended period of dryness has impacted heavily on the tonnage for next year. We need perfect conditions from here on."

On a positive note, he said, the world sugar price would give growers an increase in their bottom line.

"I'm taking advantage of that through my forward pricing and growers need to be able to get themselves in a position where they can take advantage of that price," Mr Borg said.

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