Rainfall Jeopardizes Australia’s Sugarcane

Posted by Matt Hopkins|5 October 2010

“Extremely wet” conditions have hampered Australia’s cane harvest and cut sugar levels, and more rain could force farmers to leave crop unharvested, dampening a rebound in production from historically low levels, according to a report by agrimoney.com.

US Department of Agriculture’s Canberra bureau has cut the forecast for Australia’s sugar output by 180,000 tonnes to 4.8 million tonnes.

“Extremely wet weather, combined with some industrial stoppages, have slowed harvest and reduced [sugar content],” the bureau said in a report. “Industry sources suggest that, in the word affected areas, some cane will probably not be harvested due to extremely wet conditions.”

The lower supply is troublesome considering Pakistan’s sugar shortcomings as a result of widespread flooding. Sugar prices have yet to be significantly affected by the news, as refined sugar futures fell slightly last week.