- American beet sugar production will be the lowest in 10 years.
- This means that the USA will need to import more sugar to reach the desired 13.5% losing stocks to use ratio.
- Imports will come from Mexico and raw sugar TRQ holders.
November WASDE Release
- The bad weather in North Dakota and Minnesota has caused harvesting difficulties for beet farmers.
- Minnesota Governor, Tim Walz, is even seeking certain growing areas to be declared as ‘disaster areas’ to remunerate farmers for lost production.
- The ground has frozen, making the extraction of beet much harder, leading to some areas being left unharvested.
US Beet Production
- This is likely to mean an increase in the sugar imports from Mexico and the raw sugar TRQ allocations.
- Supply out of Mexico is expected to fall, this could put their capacity to fill an increased export quota at risk.