Wet Queensland
There are many resons supporting sugar futures in the news this week, among them, higher crude (today above 50), Fed activity in bond buying, short crops in India, and a widening gap in the global S-D – all topics discussed in our letters in recent weeks. Today, we add to the list, wet weather in Australia. We all know that the dryness in Australia has impacted sugarcane production in recent years. Most of the continent could still use more rain. But the peristent wet weather in Queensland (intensive cane growing ) as a result of the current pattern will negatively impact yield as the current crop is in the final stretch before harvest commences in late June. View the Weather Trends forecast for the current week above; next week looks similar. At the moment, this is not moving markets, but will certainly have the potential to do so when more yield estimates start to come out approaching harvest.
