Tag Archives: sugar mill

Damaged sugar cane from cyclone Yasi to fuel mills in Queensland

In a bid to salvage something from recent damage to sugar cane crops in Queensland caused by cyclone Yasi in early February the remains have been turned into a renewable resource to fuel the boilers of sugar mills.  The woodchip will be used to generate steam for the boilers.

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Iraq purchases 25% of its annual consumption

Iraq’s state run food company has purchased 200,000 tonnes of white sugar which accounts for approximately 25% of its annual consumption.  The purchase was made by the Foodstuffs Trading Company at a price in excess of $900 per tonne on a CIF basis.  Iraq consumes approximately 800,000 tonnes annually.

Iraq’s two sugar mills have not produced sugar since the invasion of Iraq in 2003 which has led the state to purchase sugar through open tenders.  The mills may be operational again in the near future. Recent protests in Iraq over the rising price of food have led the state to move to secure sugar supplies.

Concerns over sugar crop in Brazil

Although the market is technically overbought which would normally indicate a possible reversal, at least in the short term sugar looks likely to make further gains due to supply concerns in Brazil and a harvest likely to end sooner.

A weak dollar and a rally in corn prices due to a worse than expected crop in the U.S.  also supported sugar and ethanol prices.  However, as open interest is lower in the midst of such a rally this could be an indication that once the rally has lost its steam there could be a reversal.

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