This update is from Sosland Publishing Co.’s weekly Sweetener Report. This update is from Sosland Publishing’s Sweetener Report. For more information and subscription details, CLICK HERE.
Insight Focus
- Western Sugar Cooperative will only deliver 88% of its contracted sugar for 2022/23.
- This is due to poor weather hitting sugar production.
- The American sugar beet harvest is finishing in the next few days.
The sugar market last week was hit with a force majeure by a major beet processor and by a lower supply forecast from the US Department of Agriculture. Trade was slow; prices were firm.
In a letter to customers, the Western Sugar Cooperative said it would deliver only about 88% of its contracted sugar for the 2022-23 marketing year due to the impact of adverse weather on sugar production. While the 12% reduction from Western equals only about 65,000 to 70,000 tons of sugar (based on its 2022-23 USDA market allocation), it further shrinks an already tight supply situation amid high prices.
The Michigan Sugar Co., which had been offering sugar on a limited basis at 59¢ a lb, withdrew from the market after the action by Western. Other beet processors already were out of the market for the 2022-23 season.
Meanwhile, sugar beet harvest was wrapping up across the country. Sugar beets in the four largest-producing states were an aggregate 94% harvested as of Nov. 6, compared with 95% at the same time last year and 92% as the 2017-21 average, the USDA said. Harvest was completed in Minnesota, North Dakota and Wyoming, with most other states expected to complete harvesting in the next few days, racing to beat freezing temperatures in some cases.
In a letter to customers, the Western Sugar Cooperative said it would deliver only about 88% of its contracted sugar for the 2022-23 marketing year due to the impact of adverse weather on sugar production. While the 12% reduction from Western equals only about 65,000 to 70,000 tons of sugar (based on its 2022-23 USDA market allocation), it further shrinks an already tight supply situation amid high prices.
The Michigan Sugar Co., which had been offering sugar on a limited basis at 59¢ a lb, withdrew from the market after the action by Western. Other beet processors already were out of the market for the 2022-23 season.
Meanwhile, sugar beet harvest was wrapping up across the country. Sugar beets in the four largest-producing states were an aggregate 94% harvested as of Nov. 6, compared with 95% at the same time last year and 92% as the 2017-21 average, the USDA said. Harvest was completed in Minnesota, North Dakota and Wyoming, with most other states expected to complete harvesting in the next few days, racing to beat freezing temperatures in some cases.
