25% of Australia’s sugar crop at risk

Queensland, where 90% of Australia’s sugar crop is grown is likely to face cyclone Yasi shortly.  Queensland Cane Growers association announced that at least a couple of districts would be affected, falling in the expected path of cyclone Yasi.  A threat exists to 25% of Australia’s sugar crop or over 8 million tonnes.

Sugar futures are down following rallies to near 30 year highs last week.  However, supply is tight and provides support to prices despite raw sugar futures correcting by 4%.  The cyclone and uncertainty over the size of Indian exports continue to ensure supply tightness.

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