- The latest WASDE balance for the USA has reduced the country’s overall beet production by 300k short tons.
- This is partly due to the early crop start but also because the beet yield estimates have been downgraded.
- This will likely result in an increased Mexican quota for 2021, which Mexico should have no trouble filling.
November WASDE Release
- The supply to the US market has been reduced by a total of 440k short tons in the latest WASDE balance.
- This is largely due to the expected reduction in the 2020/21 beet supply.
- Part of this stems from the early start in the beet crop, which pushed 100k tons of supply into 2019/20, but forecast yields are also down.
- This does not seem to be related to the warm weather we are currently seeing in the Midwest.
- As a result, the December WASDE should allocate a larger quota to Mexico to make up for the shortfall in supply.
- With the current production estimates, Mexico’s quota should increase to 1.24m short tons next month.
- You can plan for various WASDE outcomes and calculations using our WASDE Scenario Planner.
- With a rebound expected in the Mexican cane crop this year, we don’t think it will be difficult to source the necessary volume.
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