Heavy rain and flooding hit large parts of Australia's key sugar growing northeast over the Christmas weekend with more predicted, weather forecasters said on Sunday. The downpour has come from the remnants of tropical cyclone Tasha, which hit the coast in the north of Queensland state on Saturday before it was downgraded.
The weakening storm has been moving south-west over the mainland at around 30 km (19 miles) per hour, bringing heavy rain, Australia's Bureau of Meteorology said. The bureau has issued a severe weather warning, with flooding reported in parts of the state. Rainfall of up to 160 mm was reported inland of the coastal town of Mackay. The rains are the latest to hit key farming areas of eastern Australia with effects on global commodity prices, with many parts of New South Wales state still under water following wet weather in recent weeks. Queensland is a major sugar growing area and the latest rain is widely expected to push prices higher. Australia, a top sugar exporter along with Brazil and Thailand, this month slashed its current year sugar export forecast by 25 percent as flooding reduced the sugar content of cane, and more rain could further damage the crop.