There hasn’t been much good news in the last month for the Far North economy but quietly in the background sugar has been on a run and now at the highest prices ($US) for a few years.
This appears to be because of issues in Brazil:
Sugar futures on ICE soared to $20 per pound for the first time since February 2017, as downgrades to the production outlook in top sugar exporter Brazil exacerbated an already tight global supply outlook. Brazil’s 2021/22 center-south sugar production is forecast to fall to 32.5 million tonnes from a June forecast of 34.1 million tonnes as drought and frosts damage the sugarcane crop, food trader Czarnikow said. Sugar is currently up around 30% year-to-date buoyed by concerns that severe frosts and the worst drought in nearly a century in the leading sugar producer will cause considerable losses in sugar production.
Meanwhile the $AUD was also been softer recently falling below $US73c overnight:
Source: Trading Economics (with somewhat misleading scaling on the sugar x-axis)
QSL: Weekly Market Update