USDA: U.S. Sugar Production Up But Supplies Down

Even though production was cited higher in the USDA’s May WASDE report, the projected U.S. sugar supply for fiscal year 2010/11 is down 3.3 percent from 2009/10. Offsetting factors were lower beginning stocks and imports.

Higher beet sugar production reflects a return to trend yields, while cane sugar production is increased for Florida and Texas. Imports under the tariff rate quota (TRQ) reflect the minimum of U.S. commitments to import raw and refined sugar and projected shortfall. The Secretary of Agriculture will establish the actual level of the TRQ at a later date. Imports from Mexico are nearly unchanged. Total sugar usage is unchanged.

Mexico’s 2010/11 sugar supply is up 1.7 percent with higher stocks and production more than offsetting lower imports. Production is projected to increase, as yields rebound to trend levels. Imports reflect mainly U.S. exports. Domestic sugar consumption is down slightly, due to higher use of corn-based sweeteners, and exports are up slightly. Ending stocks increased moderately.

For 2009/10 U.S. sugar, increased supplies nearly offset increased use, compared with a month earlier. Imports are increased under the TRQ and due to expectations for increased high-duty imports. Sugar deliveries are increased to reflect the recent strong pace to date.

WASDE, the World Agricultural Supply and Demand Estimates report, provides USDA’s comprehensive forecasts of supply and demand for major U.S. and global crops and U.S. livestock.