THE sugar price has sunk to its lowest in a year, following better than expected production in India and Brazil, which could impact Australian companies that begin harvesting cane in six weeks.
According to The Australian Financial Review, the immediate impact is likely to be small because Australia's biggest sugar producer, CSR, and rival Maryborough Sugar Factory have already agreed to prices for the bulk of this year's sugar harvest.
However if forecasts for a prolonged period of softer sugar prices are accurate, Australian producers could receive lower prices for the unsold sugar for their 2011 and 2012 harvests.
CSR and Maryborough have sold about half their 2011 crops.
The sugar price has fallen below US15¢ a pound, less than half the 30-year highs struck earlier this year on fears of sugar shortages.
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