A 30,000 tonne shipment of NSW’s raw sugar is making its way to Japan, having been purchased by Japanese trading company Toyota Tsusho which provides Australian sugar to Japan’s largest sugar refiner.
Sunshine Sugar hedged this cargo while the market was much higher and has achieved a gross price of over $540 per tonne.
Sunshine Sugar has physically sold and has hedges in place for over 90 per cent of this year’s production which means that even with the remaining 10 per cent priced into the current low market it should deliver a price in the high $400s/t. This is well up on current market of $370/t and a healthy margin above the co-op’s benchmark of the harvesting pool offered by Queensland Limited which is currently projecting $427/t. This has allowed the co-operative to ‘secure its sugar positions’ to the point where members will receive $35-$36/t for their cane this season.