Damage from heavy rain, flooding and Cyclone Yasi to Queensland’s sugarcane crops has left growers unable to meet export contracts. With more sugar forward-sold than the industry has actually produced, cane growers face sharing the costs of servicing contracts with imported sugar. Marketing organisation Queensland Sugar, which exports 90% of Australia’s sugar, reported an 800,000 tonne hole in its export plan as a result of diminished production. The shortfall has forced Queensland Sugar to buy back futures contracts at premium prices and import sugar from other producers to fulfil some contracts. Sergei Gudoshnikov, senior economist at the International Sugar Organisation,… Login to continue

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