August 2010 WASDE Report on Sugar

Projected U.S. sugar supply for fiscal year 2010/11 is increased 506,000 short tons, raw value, from last month, due to higher beginning stocks, production, and imports, reports USDA in its August 12 WASDE report.

Production is increased 100,000 tons due to higher than expected forecast U.S. sugarbeet yields. Imports are increased 185,000 tons to reflect lower tariff rate quota (TRQ) shortfall and the announced refined specialty sugar quota. Sugar use is increased 200,000 tons in line with the increase for 2009/10.

For 2009/10, U.S. supplies are increased 341,000 tons, due to higher beginning stocks, production, and imports. Beginning stocks are increased 35,000 tons due to revisions in Sweetener Market Data. Cane sugar production is increased 6,000 tons based on processor reports. Imports are increased 300,000 tons: 50,000 tons less TRQ shortfall, 50,000 tons more re- export imports, and 200,000 tons from Mexico and high-tier imports.

These import increases are driven by tight U.S. supplies. Total use is increased 120,000 tons, reflecting revised estimates in Sweetener Market Data. Ending stocks are increased 221,000 tons.

For Mexico, 2010/11 ending stocks are lowered 95,000 metric tons, raw value, due to lower beginning stocks. Mexico=s 2009/10 production is decreased slightly while exports are increased 90,000 tons; sugar use is unchanged.