Thursday, July 24, 2025

Issue:

Mackay and Whitsunday Life

Choosing Your Sugar Price Path

Simon Hood – Wilmar Manager, Grower Marketing

Every grower has a different way of handling their GEI sugar price exposure, which affects their final cane price. Some like to keep a close eye on the market, while others prefer a hands-off approach.

We offer a range of pricing options so growers can choose what suits their level of interest and their risk appetite.

We recommend thinking about sugar pricing as a form of risk management. If you're using Target Pricing, it means selling in small steps as the price improves, with the aim of locking in a solid average price over time.

Another pricing option we recently introduced is our Managed Pool Plus. This is an actively managed pool that includes both miller and grower sugar price exposure. Our goal is to outperform the market across the life of the pool. Despite a tough market, the 2025 pool is holding up well.

Due to increased enquiry from growers, we have extended the nomination deadline for the 2026 Season Managed Pool Plus until 31 July. That means there’s still time to allocate some of your 2026 GEI sugar exposure.

We created this pool to help reduce some of the stress around pricing decisions. Some growers dip their toe in by allocating just 10% to see how we perform. Others have put a greater share into the pool. A popular strategy is to split your exposure into thirds – one third into MPP, another third managed through Target Pricing, and the final third left until April to decide between the Production Risk Pool or our Grower Managed Production Risk Scheme.

If you’re not sure how the Managed Pool Plus could work for you, we can help. Our Grower Marketing team can compare different approaches, show how prices have moved, and talk you through possible outcomes under various market conditions. We can also check on any active orders you have and share the latest updates from our global market analysts.

Right now, the market is sitting tight, waiting on more solid data before making any big shifts. Brazil is still the country to watch. Its sugarcane crush is running 15% behind last year. They’re pushing hard on sugar production (over 53% of the crush), but the quality of cane – particularly the sugar content (ATR) – is down more than 5% on last year. That’s a big deal, and something the market is watching closely.

Our Grower Marketing consultants can compare different pricing approaches and talk you through
different possible outcomes

In other news