Tuesday, 17 July 2012
With the finalisation of the 2011 Season made as I am writing this column, I am pleased to announce that QSL has achieved an all-time record Seasonal Pool Price.
We will also be passing back $11 million from our corporate surplus to the QSL Shared Pool. The Shared Pool consists of sales revenue QSL receives from premiums above the ICE11 market, less direct marketing costs. The Shared Pool result is added to the Gross Price for each pool to determine the Net Price that is passed back to industry members. This surplus easily exceeds the $7 million QSL charges Pools for marketing services.
2011 Pool Results
Actively Managed Pool
Guaranteed Floor Price Pool
The majority of this $11 million corporate surplus was generated through our other origin sugar program. As I’ve explained in recent columns, the other origin sugar program helps us create value and maximise returns for our members by taking advantage of the structural supply deficit in Asia and the moving supply and demand situation in each shipment position listed on the futures market.
More information as to how these results relate to cane payments will be available from your local milling company. We will make the final payments for the 2011 Season in mid July 2012.
Adverse weather conditions
Here at QSL we’re closely following the wet weather conditions that are affecting many of our members. With what has been one of the wettest beginnings to the season in memory, we know that many of you already are experiencing delays to your harvest and/or crush.
The rain has delayed some delivery of sugar to QSL terminals. We have a conservative early-season shipping program in place and we are being cautious about future sales and pricing. The changes QSL made to our pooling system last year as a result of the Pooling and Pricing Review are now in place and are helping us to manage extreme weather events like this. At this time, we expect to have enough sugar to get all our customers their shipments on time.
We understand the difficulty that these conditions are causing for the industry and it’s an issue we are monitoring to determine exactly what the impact will be on the season’s actual tonnage. We have a large buffer tonnage in place which should easily cover any crop shortfall. The buffer tonnage will not be sold or priced until it is delivered to QSL.