• The USDA has reallocated the raw sugar Tariff Rate Quota.
• This should help increase raw sugar stocks.
• The USDA hopes this will stop American raw sugar prices rising further.

The USDA Reallocates Tariff Rate Quotas

• The United States’ Department of Agriculture (USDA) has reallocated 76k tonnes of Tariff Rate Quotas to 26 countries looking to export more raw sugar to the USA.
• The Dominican Republic and Brazil collectively received 39% of the reallocation (30kmt).

Why Has the USDA Done This?

• Many TRQ holders fail to ship their allocated amount, so the USDA redistributes any unfilled quota to those keen to export more raw sugar.
• The Philippines, as was the case last year, has left a large amount of its quota unfilled this year (71kmt).

• This ensures the US’ sugar stocks and prices remain at a healthy level.
• Yesterday, the No.16 reached hit a nine-year high (36 c/lb).
• By reallocating the unused quota, the USDA hopes prices will revert to a more contained level as supply worries ease.

Other Opinions You Might Be Interested In…

• Mexico: Poor Sugar Production Following 2019/20 Drought
• Mexico’s Drought Issues to Persist in 2021/22
• Market Talk: The Philippines to Ship 70% of US Sugar Quota?
• Ask the Analyst: The Philippines’ Sugar Shortfall in 2021

Explainers You Might Be Interested In…

• Czapp Explains: US Sugar Pricing and Quotas
• Czapp Explains: US Sugar Production and Consumption