- The USDA’s reduced its beet production forecast for the US.
- The July heatwave in North Dakota and Minnesota hindered beet development.
- Sugar prices in the US Pacific Coast region should continue to climb in response to the news.
The USDA Has Lowered its US Beet Production Forecast
- The United States Department of Agriculture (USDA) now thinks the US will produce 5.03m short tons of beet in 2021/22.
- This is down 25k short tons from its initial estimate, and 81k short tons year-on-year.
- Drought in North Dakota and Minnesota means the beet aren’t growing as well as they’ve done in the past.
- Recent quality rankings also reveal that the beet in these (and most other) regions rank more poorly than they did in 2020.
- These two states account for around 49% of US Beet production so, if these conditions persist, the US may need to up its import expectations for 2021/22.
- As it stands though, beet production is not too dissimilar to last season, despite the drought.
How Have Prices Reacted to the Reduction?
- Sugar prices in most of the US’ beet regions have held steady.
- However, those in the West Coast’s cane regions have soared over the last few weeks.
- Beet producers have already sold most of their crop, meaning uncovered buyers on the West Coast will need to import bagged whites for direct consumption.
- This is not so easy at the minute, given the poor container availability and high freight rates.
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