Was reading this article and this I think is making sense as Australia in Sugar space is a minor player and 20% damage in crop may have short-term impact of global sugar prices..
The floods in Queensland, which lifted world wheat prices on Monday, may prove less successful at supporting sugar values, even though the state is the centre of Australian production.
Phillip Futures analyst Ker Chung Yang forecast that sugar prices would "likely take a breather" in the short-term as rising hopes for Indian exports of the sweetener overcome concerns at Queensland's plight.
Queensland produces the vast majority of sugar in Australia, the world's third-ranked sugar exporter in recent seasons, after Brazil and Thailand.
However, sugar investors had already factored into prices the state's plight, which has brought the cane crushing season to a premature end, leaving an estimated 5.0m tonnes of the crop unharvested.
The Australian Sugar Mills Council last week estimated Australia's crush at 27.5m tonnes, the lowest for 19 years and 4.5m tonnes below initial forecasts.
"This has already been priced in, over at least the last two weeks," Mr Ker told Agrimoney.com.
