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Upbeat on Global Raw Sugar Prices

05 October 2011

AUSTRALIA - Queensland sugar industry organisation, Queensland Sugar Ltd (QSL), has flagged a confident outlook for global raw sugar prices; saying that even if they soften, demand for premium Australian raw sugar should remain robust.

General Manager Sales and Business Development, Brent Casey said that QSL is continuing to build strong relationships with international refinery customers across Asia.

"Our customers value the quality of Australian raw sugar ... This gives Australian sugar an edge on the world stage," he said.

According to the North Queensland Register, Mr Casey said that volatile international macroeconomic conditions may foreshadow an adjustment to the global sugar market.

Fundamental supply and demand factors, as well as financial uncertainty and a weakening Australian dollar are expected to see global sugar prices continue to fluctuate in the near term.

The Australian Bureau of Agricultural and Resources Economics and Sciences (ABARES) Agricultural commodities, September quarter 2011 report states that the "world indicator price is forecast to decline by around 14 per cent in 2011-12 to average US 20.4 cents a pound."

The ABARES forecast expects that record world sugar production will outweigh any increase in consumption thus placing downward pressure on prices.

"For now, we remain confident that Australia's superior product quality, marketing expertise, risk management strategies and efficient supply chain will enable us to continue to attract a premium price for Australian raw sugar on the international market," he said.

TheCropSite News Desk

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