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QCS welcomes back growers for the 2020 Season
Following the 2020 Season GEI nomination deadline of 31 October, QCS is welcoming back a number of growers who nominated QSL as their 2019 Season marketer, but have returned to QCS for the 2020 Season. Growers coming back to QCS have told us that our straightforward and flexible marketing offer, which continues to provide some of the best returns available to Australian growers, has been key to their decision. Growers have also let us know that another important reason for returning to QCS is our strong loca...Read full article -
QCS market report 14 October 2019 14 October 2019
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- Raw sugar futures rallied in the run up to the October 19 expiry and continued to strengthen afterwards, before losing momentum and giving back two weeks’ worth of gains.
- Prices have traded freely with the October 19 contract off the board
- Indian sugar is still expected to hit the global market through Q1–Q2 2020, however prices will need to move back into the 13–14 USc/lb range to incentivise exports from the region.
Macro/currency commentary
- An uninspiring month for the AUD, which gave up prior gains that had seen the dollar climb back up to USD 0.69.
- The RBA continued to ratchet up easing expectations by cutting interest rates to a record 0.75%.
- Looking ahead, US and China trade discussions remain at the forefront of AUD drivers in the near term.
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First direct export shipment a win for Mackay growers
The first direct export sale in Mackay Sugar’s history shipped in September, with 24,000 mt of raw sugar leaving for Japan aboard the MV Crystal Island. The MV Crystal Island left the Port of Mackay on 18 September and arrived in Japan in early October. Thanks to new marketing arrangements, the direct sale means that costs previously associated with transferring export sugar through QSL or its predecessors are no longer paid, putting more money into growers’ pockets. In the current environment of low w...Read full article -
QCS market report 19 September 19 September 2019
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- Raw sugar futures have drifted lower over the past month as the excess global supply of raw sugar weighs further on prices.
- Prompt October19 contract succumbed to the pressures, making life of contract lows below 11 USc/lb.
- With the market well supplied through Q4 2019, analysts are predicting Indian exports will hit the global market through the first half of 2020.
Macro/currency commentary
- A generally positive month for the AUD, trading back toward USD 0.69 on a weaker USD and sentiment around the ongoing trade discussions.
- With US/China trade talks set to resume next month, not many believe this discussion will provide any relief to the struggles of the US economy.
- Locally, the RBA looks on track to cut rates again in 2019. Q2 GDP results and the latest employment figures (further weakness in the labour market) were well below the RBA’s forecast figures.
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2020 Season QCS grower information sessions
Each year, growers have the opportunity to choose their GEI sugar marketer (or marketers) for the upcoming season. With the 2020 Season deadline of 31 October approaching, QCS is hosting grower information sessions. The sessions will include a short presentation about marketing GEI sugar with QCS in the 2020 Season, followed by an informal discussion (including questions). Mackay growers are invited to attend any of the following sessions: Date & time Venue 7.00pm, Tuesday 1 October St Helens B...Read full article -
QCS market report 12 August 2019 12 August 2019
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- Raw sugar futures have chopped over a 105-point range in the last month.
- Brazil has continued to reduce sugar output with little effect as oversupply remains an issue for the global market, thanks in large to excess Thai and centrals sugar.
- The Indian government announced that it will extend the buffer stock to 4mmt, from the previous 3mmt this year, and is expected to make a formal announcement on its 19/20 export policy this month.
Macro/currency commentary
- The AUD has been a runaway train over the past month, trading from a mid-July USD 0.7082 high to 10-year lows in the last week at USD 0.6677.
- Trade tensions between the US and China continuing to dominate market sentiment.
- A busy week on the economic data calendar as the market looks for further policy easing justification in the local employment numbers on Thursday.
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New addition to the QCS team
QCS has appointed Mr Arthur Douglas to join its Mackay-based team as QCS’ Grower Services Officer. Arthur is a well-known face around the Mackay region, having worked as an Agribusiness Banking Manager with the National Australia Bank in the Mackay and Rockhampton regions for two decades. Arthur brings an outstanding record of building and maintaining customer relationships, in-depth knowledge of the sugar industry and a strong understanding of financial risk and cashflow management for agricultural busine...Read full article -
QCS Market Report 19 June 2019 19 June 2019
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- After spending much of Q2 below 12 USc/lb, prompt July futures have surged back towards 13 USc/lb.
- Brazil continues to produce more ethanol over sugar, despite weaker WTI oil prices, with stronger demand for ethanol keeping ethanol prices buoyant.
- The question remains if and how much sugar India will export this year. If the Indian government can solve the supply glut, then prices are expected to come under pressure again.
Macro/currency commentary
- A busy few weeks for the AUD as the Reserve Bank of Australia (RBA) cut interest rates at its latest meeting and indicated more cuts are on the way in 2019.
- This week we saw the US Federal Reserve leave rates on hold at 2.5%.
- The AUD continues to trade near USD 0.69. Topside resistance is expected if the market returns toward USD 0.695.
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Experienced trader joins QCS
Queensland Commodity Services (QCS) today announced the engagement of new trading manager, Darren Chen. “We are very pleased to have been able to secure Darren’s services on a contract basis from 7 May,” said QCS General Manager Brent Casey. “Darren has spent over ten years with international sugar trade houses Cargill and, most recently, Alvean. “Cargill is the largest privately-owned corporation in America, with major businesses trading, purchasing and distributing agricultural commodities acro...Read full article -
New season brings change for QCS
This year’s crush will see a new trading manager at Queensland Commodity Services (QCS), Mackay Sugar Limited’s GEI sugar marketer. QCS General Manager Mr Brent Casey announced today that the current trading manager, Stephen Stone, had resigned from QCS, with his resignation taking immediate effect. “We’d first and foremost like to thank Steve for his valuable contribution to the strong returns achieved by QCS over the past two seasons,” Mr Casey said. “QCS has benefited from Steve’s knowledg...Read full article