Insight Focus
- The US is set to produce around 4.5m tonnes of beet sugar and 3.5m tonnes of cane sugar.
- Apr-Oct US imports are around 613k tonnes under TRQs and 444k tonnes from Mexico.
- Domestic prices have been steady over the past month.
The major beet producing states are Minnesota, Idaho, North Dakota, and Michigan. Cane is produced in Florida, Louisiana, and Texas.
Sugar production in North Dakota and Minnesota is set to fall because planting has been delayed due to adverse weather. This shortfall will most likely be covered by an increase in the Mexican quota.
We expect the Mexican quota for 2021/22 to increase to 1.5m tonnes from 1.3m tonnes to make up for the drop in domestic production. Over October-April, the US has imported around 444k tonnes of sugar from Mexico. Of this, 215k tonnes were raws and 230k tonnes whites.
U.S. Raw Sugar Tariff-Rate Quota (TRQ) WTO Allocations (Oct’21-May’22)
Over the same period, the US has imported 613k tonnes of raw sugar through tariff-rate quotas.
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Explainers That May Be of Interest…
