As Australian cane growers gear up for this year’s harvest, there are signs the market is starting to turn – for the better – with the erosion of burdensome global stocks, according to Rabobank’s sugar analyst Charles Clack.
In the Burdekin to present at the bank’s Sugar Update event last week, Mr Clack told growers there is “light at the end of the woods”, as global stocks are poised to come back into balance in 2019/20, in line with the five-year average.
“This doesn’t mean we will see a strong jump in sugar prices,” he said, “but with the global sugar market set to run up a deficit next season – as consumption exceeds production – there is certainly some upside to the price outlook. And we are forecasting domestic prices to reach around $450 per tonne by the end of this year.”
Mr Clack said Rabobank’s just-released
69cba92a-ea8f-44ce-bfec-4dab42e7e2c0.jpg?sfvrsn=a6461a8c_1)
