Simon Hood, Wilmar Manager Grower Marketing
North Queensland has seen a nice drop in temperatures this past fortnight, which is a welcome change to our growers who are still busy out in the field preparing for the start of the 2025 season. Our team has also been active on the ground, meeting with growers to finalise their pricing and provide updates on what’s happening in the market.
For those participating in the Managed Pool Plus for the 2025 season, you would have recently received an update detailing the pool’s valuation, pricing strategy, and market outlook.
While it's still early days, the pool is tracking well above the benchmark price, supported by strong base pricing in both the futures and currency markets. The use of option strategies allows for downside protection while maintaining the opportunity to benefit from potential market rallies.
Launched last year as a new pooling option for Wilmar growers, the Managed Pool Plus has attracted strong interest from those seeking a more stable approach amid market volatility. Nominations for the 2026 season are now open and will close on 30 June. I encourage you to contact a member of the team if you’re considering this option for your pricing next season.
In broader market news, the #11 sugar contract remains range-bound due to limited activity from both buyers and sellers.
Attention is centred on Brazil’s bi-weekly UNICA reports, which offer key metrics such as harvested tonnage, CCS, and sugar mix. Yield data comes from the monthly CTC reports. The May reports indicate the Brazilian harvest is running behind schedule, with lower-than-expected yields, CCS, and sugar mix. However, it's still early in the season, and recent weather-related delays may be offset in upcoming updates.
Given the current "watch and act" sentiment, we expect prices to remain within a broad trading range of 17.00 to 18.50 USc/lb. A weaker-than-anticipated UNICA update could push prices toward the upper end of that range, while further declines in oil prices could pressure the lower end by reducing ethanol parity pricing.
Photo supplied: Wilmar Sugar and Renewables
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