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- As the estimates for US beet sugar production have been revised upwards, the cane estimates have moved down.
- This represents a total supply reduction of 100k tonnes.
- The US therefore needs more sugar imports, but has until March to decide where from.
January WASDE Release
- The cold spell that saw the huge decline in beet production also impacted the Louisiana cane fields.
- Cane production has been revised down by 181k tonnes.
Louisiana Cane Production
- This means that even though the USDA have revised their total beet production up by 77k short tons, overall domestic supply is down 122k short tons (110k tonnes).
- The USDA will need to address this supply shortfall in the March WASDE release by expanding quotas; either Mexico’s or the tariff rate quotas.
- (Tier 2) imports are currently viable in some areas and the USDA has increased its estimate for these Tier 2 imports by 30k short tons.
- If this trend continues, a significant part of this shortfall could be met by increased full duty paid imports of refined sugar.