Stock exchange news. Last season of 2010/11 was the third tight year in a row concerning sugar production in Australia, which is the world’s third largest exporter of the sweet product that has reached the minimal point during last two decades. The reason for this was abundant moisture of the ground, due to which Australian farmers had to leave some part of sugarcane in the field.
Season of 2011/2012 will be successful for sugar exporters. According to the forecast of Rabobank experts, raw sugar production in Australia as well as the product supply to the world market will rise in new agricultural year. According to recent data, export and production will exceed recent forecasts of government analytics, and the volumes will rise in relation to the difficult season of 2010-2011.
However, export comments show that sales will be low. Australia traditionally is the main supplier of the sweet product to Asian countries, including Japan, South Korea, and Malaysia.
Raw sugar production will reach 4.1 mln. metric tons, according to the bank estimation. Monthly report claims that export supplies will rise to 2.8 mln. tons, although recent forecasts of ABARES statistical office concerning sugar have amounted to 3.85 mln. tons of yield and 2.48 mln. tons of export.
Traders of Department of Derivatives Trading admit that current situation at world sugar market is such that the market has moved from the strong resistance level 25, which coincides with a 200-day average. This may explain the correction upward motion since the beginning of the week. At the same time, the general background is bear, which provides the basis to assume that downward motion may start after some consolidation around level 25 and a 200-day average.
