Short Term Pool prices
Shared Pool price
The Shared Pool price for the 2020 Season at 31 May is AUD 2,028.42 IPS. The Shared Pool return is applied to around two to three per cent of your in-season tonnage (dependent on US Quota entitlements allocated to QCS for the season).
As per the Mackay Sugar cane supply agreement, the Shared Pool price is a combination of US Quota pricing of AUD 640.57 less QCS costs. For May, QCS costs are actually a positive number, AUD 28.38.
From time to time, typically when the Thailand crop is low, Australian sugar receives a significant premium over the ICE No.11 for sales into Asia. This is currently the case, where premiums paid by some customers are up to AUD 90 per tonne above the ICE No.11. Regional premiums are paid through the Shared Pool, whereby the additional regional premiums are added to USQ tonnes. Because USQ tonnage, which is the only sugar in the Shared Pool, is relatively small overall, these additional premiums have a large impact on the Shared Pool numbers.
The price a grower receives for forward pricing varies, dependent on the grower’s individual pricing decisions. The price is received in the season in which the sugar is produced and delivered, not the season in which it is forward priced.