That is the forecast from the latest NAB Rural Commodities Wrap released today, which provides an overview of key commodity prices and macroeconomic drivers, such as interest and exchange rates.

Khan Horne, NAB agribusiness general manager, said that the high sugar prices were great for local producers and still looking very strong for the coming Australian crop.

“The global supply situation for sugar is tight with uncertainty still around the size of the Brazilian and Indian crops, which means that prices are likely to remain high for at least the next six months,” Mr Horne said.

“If these two countries harvest good crops, prices may come back, however if they are threatened then prices will probably remain at or above current levels in the long term.

“Australian sugar growers have had a few tough years with low prices.

“While the feeling is generally optimistic with some growers using their higher incomes this year to replace equipment, growers remain cautious about the possibility of a commodity price downturn.

“To manage this risk, growers can utilise the forward selling options available through banks and millers to lock in a portion of their crop at the currently available high prices,” he said.