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  • The USDA will change the sugar mix Mexico can send to the USA by 91k tonnes this season.
  • This should help refined supply in the short-term as the crop losses affected refined beet supplies.
  • However, overall American sugar supply is still very short and more needs to be done to balance this out.

Beet Shortage Causes Tight Refined Supply

  • Under the Suspension Agreement, the Mexican quota to the USA is split 70% raws and 30% refined.
  • However, due to the US beet crop shortfall, refined sugar supply is very tight in the early part of the season.

US Beet Crop Progress

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  • This move aims to accelerate the supply of refined sugar into the market as the refining process is bypassed.
  • However, this does not change overall supply and more imports will definitely be required this season.
  • Mexico cannot export all its sugar into the US at once due to restrictions enforced by the US government, and refined availability is currently scarce so it is possible this sugar is shipped as 99.4pol Estandar in the immediate term, failing to adress the problem.

Vincent O’Rourke

Vincent began his career at CZ in 2016 as an analyst in the London Office, focusing on raw sugar flows and the Refineries in North Africa and the Middle East. Since 2019 Vincent has moved to the Miami office, leading the Americas analysis (excluding Brazil) and implementing the new data capture and database processes. Vincent graduated from Edinburgh with a master’s in theology in 2015 and completed a Masters in Emerging Economies from King’s London University in 2016

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