Exports of sugar from Australia are forecast to rise to their highest value in 36 months this year due to a stronger product generating better crops, according to the Australian Bureau of Agricultural and Resource Economics and Sciences.
Bloomberg reports shipments of the sweetener might amount to 3.35 million metric tons for year starting July 1, representing an increase of 13 percent from the 2.96 million ton estimate three months ago. Generation has not been that high since year ended June 30, 2010, bureau data states.
"An uplift in estimates in Australian sugar production and our export program, in conjunction with rising production elsewhere, certainly does mean that prices are likely to come under a bit of downward pressure," agribusiness economist Michael Creed with National Australia Bank told the news source. "There’s quite a lot of sugar around."
At 2 p.m. on Tuesday, sugar futures gained 4 percent, an 0.008 cent lift to 20.79 cents per pound.
The price of raw sugar has fallen 15 percent thus far in 2012, which augments losses of 27 percent from last year.
Reuters reports sugar futures scaled to their highest price in almost eight weeks.
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