CSR sees favourable climate for higher sugar prices
CSR has told investors at a briefing into their proposed demerger of building and sugar operations that they anticipate their sugar business to get a boost from higher prices.
Sugar has been one of the strongest performing commodities on world markets this year thanks to strong demand and fears over supply and the largest producer of sugar in Australia anticipates such conditions to continue to provide robust prices in the year ahead.
“Longer term fundamentals are supportive for global raw sugar price,” they advised in their presentation on Monday. “Forecast global supply shortage from lower production in India and slower growth in Brazil, (coupled with an) increasing demand for Brazilian fuel-grade ethanol which tightens sugar supply (should ensure high prices).”
The company said demand remained “strong”, with growth of 1.7% per annum, largely driven by developing countries.