The growing season rolls on, and the weather gods continue to throw curveballs to sugarcane growers.
After a relatively dry period following the February onslaught, the recent rain events may well cause a further downgrade in crop expectations.
The southern Wilmar crushing regions would appear to be a beneficiary of rain, however, the Burdekin and Herbert regions are looking for some sunshine to get the crop growing again.
With crop estimates released in early April, it is important for growers to cross-check that their GEI-nominated cane tonnes are aligned with their mill crush estimate.
The sugar market continues to find export support on price dips and scale-up trade selling on market rallies. This sideways trading pattern may well continue until the harvesters roll into the Brazilian crop in April.
In general, analysts are pulling back their forecast for Brazil as dry weather persists, and a delayed harvest will increase anxiety in the market as export stock levels are always low at this time of the year. The Indian harvest is nearing completion, with Wilmar estimates of 26.3M tonnes of sugar looking to be very close to final production.
The AUD continues to be bounced around by a gyrating USD reacting to the latest policy changes in the US. The risk of an escalated global trade war through reciprocal tariff hikes bodes poorly for the AUD. In addition, the recent Australian employment data suggests that the jobs market may be weakening, which could open the door for further rate cuts from the RBA. This should also keep the AUD under pressure.
In more positive news, we will be hosting information sessions ahead of the start of the 2025 crush to update growers on the sugar market and how marketing with Wilmar can benefit them.
Those attending will also get the opportunity to meet our new consultant, who will be taking over from Angus McKerrow in Plane Creek after his seven years of service to the region.
If you’re interested in attending an information session near you, please complete the registration form or contact your local consultant.
Grower Marketing Consultant Angus McKerrow and Risk Manager Bevan Patterson presenting to growers at an information session in Plane Creek. Photo supplied
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