There was positive price news for Queensland cane growers and sugar millers today, with the ICE 11 raw sugar price last night recording its greatest increase in percentage terms in 28 years.
QSL Treasurer Stephen Stone said the prompt contact, March 2016, closed the trading session at 14c/lb, as opposed to the previous close of 12.61c/lb.
Mr Stone said the aggressive improvement in the world’s primary raw sugar market price was not triggered by any single event, but instead was a case of the market sentiment turning on positive macro-economic news and growing support for a global raw sugar deficit in the coming season.
“The International Sugar Organisation revised their 2015/16 projected deficit to above 5 million tonnes, while at the same time there was more certainty regarding the receivers of sugar priced against the March 16 contract,” he said.
Mr Stone said the stronger ICE 11 price would not only benefit QSL’s 2015-Season pools, but also augured well for the season to come.
“Recent prices under 13c/lb generated structural buying interest and with producers well advanced in their pricing, there now appears less resistance to the sudden price strength,” he said.
“QSL expects the renewed focus on weather risks and an impending statistical sugar deficit will see more strength in sugar prices in the short term.”
Growers can monitor the progress of QSL’s pricing pools and general market activity and can also sign-up for QSL’s free daily price SMS service by visiting www.qsl.com.au.