Sugar Prices Surge To New Highs

The last month has seen a surge in the number 11 sugar futures contract with new highs recorded for all contracts on the board.

This has catapulted the balance of the 2022 crop to a high of $775/t for growers who are still to finalise target pricing for last season.

A major beneficiary of the higher prices has been the Wilmar Production Risk Pool. As at the end of March, the forecast pool valuation was $709/t actual ($685/t IPS).

This is a great result for growers who have chosen to use this marketing option for some or all of their crop.

For the upcoming 2023 season, prices are also making new highs, along with 2024 and 2025 seasons. At the time of writing the highest target price filled for 2023 was $690/t, $600/t for 2024 and $550/t for 2025.

We are getting a lot of enquiries from our growers what is driving the price. Obviously, the physical market remains tight with northern hemisphere crops cutting out a bit quicker than hoped and Brazil yet to fully come online.

Our forecasts have 22/23 season with a global supply and demand deficit of over

2 million tonnes of sugar.

For 23/24 season we are currently projecting the trade flows to remain tight even with a massive Brazilian crop factored in. The recent rise in the oil price and the decision by the Brazilian government to raise the tax rate on gasoline will underpin concerns for sugar supply from the world’s largest exporter.

A weaker AUD has also helped nudge prices higher.

Nevertheless, there is a market saying that high prices cure high prices. Growers need to assess where their current costs of production are, and whether the forward prices on offer make sense to provide certainty of income for their business.

Our marketing consultants are currently busy with growers finalising their pricing for 2023 season. The deadline for nomination is April 28. There is a lot of fresh enquiry for our GMPRS product following excellent grower results this year.

For any queries, please contact your Proserpine Grower Marketing Consultant Shirley Norris on 0437 803 019. Plane Creek growers can contact Angus McKerrow on 0419 238 536.

Contributed with thanks to Wilmar Sugar.

Growers can now maximise profits and reduce inputs through improved nutrient management planning thanks to Mackay Area Productivity Services (MAPS), as part of the Mackay Whitsunday Water Quality Program (MWWQP).

Nutrient management plans developed for specific farms allow growers to better understand their soils and growing conditions.

By having this detailed knowledge, growers in conjunction with agronomic assistance from MAPS, can more effectively plan what, when and how to apply nutrients to their blocks to maximise yields, and reduce inputs and runoff entering local waterways.

Nutrient management starts from the ground up with soil testing and interpretation of those results by agronomists.

Growers can access this detailed soil analysis with MAPS via funding from the MWWQP.

One grower who has taken advantage of the funding available is Albert De Boni, a generational cane grower from Devereaux Creek.

“Our soil tests are what govern how much nitrogen, potassium, phosphorous and sulphur that we put on,” he explains.

“We could be up for within excess of $250,000 this year just for fertiliser alone.”

The soil analysis determined that the pH of Albert’s farm was lower than ideal to maximise nutrient uptake from applied fertilisers.

As a result, with support and financial assistance from the MWWQP, Albert and MAPS worked together to design and construct a liquid lime spreader that could accurately apply lime to the rows. This increased the pH, allowing less nitrogen fertiliser to be applied, and optimising the cane’s ability to use that nitrogen. This project reduced the amount of overall nitrogen applied, thereby lowering costs, and moved away from blanket spreading of powdered lime, meaning smaller amounts of lime could be applied more accurately.

“The less you apply, the less chance you have of it getting into our river systems,” said Albert.

“Therefore, projects such as this one are reducing costs and improving environmental outcomes.”

“MAPS has been very, very helpful. If we can get funding to do a project, it sort of encourages us to have a go,” said Albert. If you would like to see what programs and assistance could be available to you, please contact Reef Catchments or visit their website www.reefcatchments.com.au

The MAPS Projects are funded by the partnership between the Australian Government’s Reef Trust and the Great Barrier Reef Foundation.