Day: July 24, 2019

SRA Levy Register / Wilmar Growerweb Notice

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SRA LEVY REGISTER GROWERWEB NOTICE

Wilmar has today posted the below notification to its GrowerWeb.

Sugar Research Australia (SRA) has decided to establish a Levy Payer Register to identify all stakeholders who pay a levy to the organisation. As a result, Wilmar, as a processor of cane, is compelled by law to provide information to SRA that is either Confidential Information pursuant to the terms of your Cane Supply Agreement, Personal Information covered by the Australian Privacy Principles or both Confidential Information and Personal Information. The purpose of this notice is to inform you that going forward, Wilmar must and will provide the following information about each grower to SRA on a monthly basis: ABN; Business Name; Phone; Suburb, State and Postcode; Cane Tonnes; and The amount of the levy. Previously, Wilmar lodged a Sugar Cane Monthly Return with the Department of Agriculture each month, on behalf of ourselves and growers and passed on each Growers’ portion of the SRA levy to the Department of Agriculture without providing specific details about individual growers attached to each payment. The change is because of SRA’s decision to establish the Levy Payer Register. The first monthly report must be received by SRA by 28 July 2019. Further information about the Levy Payer Register can be found: 1. In the SRA notice at http://www.agriculture.gov.au/ag-farm-food/levies/levy-payer-registers/notices/sra ; and 2. On the Department of Agriculture website FAQ section. If you have any questions about the new requirements, contact SRA Executive Manager, Investor Relations (call 07 3331 3329 or email [email protected]) or the Department of Agriculture (call 1800 020 619 or email [email protected] ).

Additional information can be found by clicking here.

Les Elphinstone
Manager KCGO

QSL Market Report – 22 July 2019

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Indicative ICE 11 Prices

*These figures are indicative of available ICE 11 prices as at 22 July 2019 and reflect the weighted average AUD/mt price. The prices have been adjusted to include Over-the-Counter margin fees charged by banking institutions and so may differ from daily prices quoted by the ICE #11 Exchange and/or other Marketers of Growers’ Economic Interest in Sugar. Values also do not account for any adjustments resulting from local Grower-Miller pricing arrangements.

Weekly Market Overview
By QSL Trading Manager Matt Page

SUGAR

Last week was a precipitous week for sugar with one way action driving prices almost 80 points lower. Sugar price movements for the week can be seen in the graph below.

• What happened this week:
o A monster 800k tonne delivery for the August London Whites expiry (the White Sugar futures contract is used as the global benchmark for the pricing of physical white sugar) confirmed what many had feared after the JUL19 raw expiry – that there is indeed plenty of sugar struggling to find a home in the physical trade flows.
o Maharashtra has experienced weaker oil and grain prices, along with some much needed rain in coastal areas. This has provided a bearish backdrop.
o Brazil Real Equals (BRL) has remained firm around 3.75, although this is largely irrelevant with prices already so far below ethanol parity.

• India: The Indian Sugar Milling Association announced that it anticipates a virtual reproduction of this year’s cane/sugar subsidy framework. Although not entirely unexpected, what did surprise the market was the comment that it would prefer it applied to 8Mmt, as opposed to the 5Mmt as it was available this year. Although it is unlikely to be applied on the full volume, it will nonetheless weigh heavy on the market.
• Commitment of Traders: Bearish sentiment gave specs plenty of reason to reload their short position, with 112k lots as of Tuesday and likely closer to 120k given the ensuing price action since.
CURRENCY
A reprice of U.S. Yields saw the DXY (USD Index) down to 96.7 on Wednesday as the AUD traded towards the upper end of its three month 0.69c – 0.71c range. This is shown in the graph below. read more

Daily Sugar Price – 24th July 2019

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Wednesday, 24 July 2019

The July 2019 contract settled at: 11.98 US c/lb

The Australian Dollar currently trades at: 70.05 US cents

Forward indicative prices in Australian dollars are:

*$374 for October Contract – 2019 season

$389 for 2019 season

$421for 2020 season

$433 for 2021 season

$4232for 2022 season

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Information sourced from QSL.