Australia is now thought to have lost 10% of its 2011/12 sugar production as a result of cyclone Yasi. This amounts to 380,000 tonnes and takes Australia slightly below its 2010/11 production.
News from Australia and India concerning a revised outlook for production and doubts concerning its OGL sugar exports have given sugar prices support. There may be a bullish trend in the short term. The drop away from recent peaks has allowed physical buyers to step in.
White sugar futures rose by 1% to close just shy of $800.