- The USDA should announce an increase in imports for 135k tonnes soon to balance 18/19 closing stocks.
- For next season the USDA is expecting an increased domestic crop despite floods but is also forecasting larger imports.
- Mexico should see their import quota increased, reducing their world market availability but also reducing the need for US imports next year.
June WASDE Release
- The US will need to increase imports this season to achieve the mandated USDA stocks to use ratio of 13.5%.
- Now that the Mexico Tariff threat has been averted, they are likely to receive a quota increase (maybe 140kmt).
- An increase in US quota will reduce the need for Mexican world market exports this season.
US Sugar Beet Planted Acreage
- Looking at 19/20, the USDA have increased the expected Mexican quota allocation, but this number is likely to reduce.
- This is because any increase in imports this season will reduce need for imports next season.
- Despite fears of slower plantings due to heavy rains in the American Midwest, US Plantings for 19/20 have been good.
- The beet crop is expected to be the third highest in the last 15 years.