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Selasa, 08 Februari 2011

Australian Sugar Area May Lose 50% of Output Potential - Bloomberg

Sugarcane plantations in the north of Australia’s Queensland state may lose 50 percent of production potential after Tropical Cyclone Yasi scythed through an area accounting for a third of output, according to a growers’ group.

Farmers will begin assessing damage to the crop today, Brisbane-based Canegrowers said today in an e-mailed statement. Losses in the world’s third-largest exporter could be at least A$500 million ($507 million), it said.

Sugar rallied to a 30-year high in New York on Feb. 2 amid concern Cyclone Yasi would cut output in Australia, before slumping 9.3 percent yesterday. The 2011 crop is likely to be “significantly reduced” by the storm, Queensland Sugar Ltd., the nation’s biggest exporter, said today.
“Some growers have lost 100 percent of their crop, a blow from which they may never recover,” Canegrowers said in the statement. “The losses will translate over many years, as sugarcane is a multiple-year crop.”

Raw sugar for March delivery tumbled to 32.04 cents a pound yesterday on ICE Futures U.S. in New York, the biggest drop since Dec. 30. Prices fell as automatic sales by computer programs exaggerated a slide that started as concerns eased that Cyclone Yasi will lower production in Australia, traders said. Prices reached a 30-year high of 36.08 cents on Feb. 2 and traded at 32.55 cents at 5:06 p.m. Singapore time. more ...

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