Brazil remains front and centre in global sugar market movements. The latest UNICA report for the first half of June shows sugar production continuing to outpace ethanol. While sugar output dipped slightly in the fortnight, it still accounted for 51.5% of cane crushed, nudging the year-to-date figure to 50.5%—up from 48.3% in the previous season. However, cane quality remains a concern.
The ATR is hovering below 12%, prompting analysts to downgrade forecasts. Year-to-date, sugar production is trailing 15% behind last season, with a lack of yield data from Brazil—now about 30% into its harvest—keeping markets guessing.
Closer to home, local interest in the 2026 Managed Pool Plus continues to build. A strong response from both returning and new growers led to an extension of the nomination window through to the end of July, allowing more time for growers to finalise their nomination.
Amid softer global prices, growers are finding value in shared-risk pricing models. The Managed Pool Plus for 2025, for example, has a price forecast on June 30 at $45 per tonne above the 2025 season Target Price. While this will fluctuate with the market, it underlines the potential benefits of diversifying pricing strategies.
Another product we have introduced to growers is assistance with input costs, particularly fertiliser. Our grower survey indicated inflation of costs was a major concern. By leveraging the buying power of the Wilmar Farms business, we link growers into a secure supply of fertiliser with price certainty for the next couple of months. With Urea and Potash prices remaining volatile, this is proving popular with growers who are marketing their GEI with us. If you're interested to see what kind of savings you could receive, please reach out to the team.
In the regions, the annual show season has been in full swing, with our team on the ground sponsoring cane-growing competitions and presenting awards—further strengthening ties with our growers and the local communities.
Operationally, the mills have made a solid start to the season. Provided weather conditions hold, we remain on track to meet the forecast harvest timelines.
The 2028 season officially opened on 1 July, alongside increased forward pricing exposure limits for the 2026 and 2027 seasons. With sugar prices currently in a contango structure (future prices higher than current), it may be timely for growers to consider setting foundation pricing orders for 2028.
Finally, our Global Trader roadshow with Peter Bingham has unfortunately been rescheduled to September due to changing commitments. With any luck, the market will have found more solid ground by then.
Publishers Indemnity. Any individual or entity that places advertising, supplies copy material, or submits editorial content to Core Life Publishing agrees and undertakes to ensure that all such material:- Does not infringe upon any copyright, trademark, or other intellectual property rights;- Is free from any content that could be considered defamatory, libelous, or slanderous;- Does not infringe upon any rights related to privacy or breach of confidence;- Contains no obscene, indecent, or otherwise unlawful material;- Complies fully with the Trade Practices Act and all other applicable laws, regulations, or statutes.Furthermore, by submitting or placing such material, these individuals or entities agree to indemnify and hold harmless the publisher, Core Publishing and Events Pty Ltd, and/or its agents from and against any and all investigations, claims, demands, liabilities, damages, costs, or judgments arising out of or in connection with the material provided. All material is believed to be accurate at the time of printing and remains the copyright of Core Publishing and Events Pty Ltd.
© 2024 Mackay and Whitsunday Life Pty Ltd.
