Cyclone Sends Bullish Signal For Asian Sugar

Cyclone Justins recent damage to the sugarcane crop in Australia has sent a bullish signal to the Asian sugar market but steep price gains were unlikely, Asian traders said yesterday.

The cyclone was actually bullish news. But given an ample harvest in Australia this year, the damage is unlikely to support the market sharply, a major trade house official in Japan said.

I dont think that global supply and demand will be affected in the short term, said a trader in China noting that some Australian futures companies pegged Justin as a bullish signal.Hong Kong sugar traders said reports on the impact of cyclone Justin on the Australian sugar crop were exaggerated. Others said that while it was too early to gauge the exact extent of the impact, they did not expect any lasting effect on sugar prices. At least 20 per cent of Australias once-expected 38-40 million tonnes of 1997/98 sugarcane had been seriously hit by Justin., the Australian canegrowers industry organisation said.