• The USDA now thinks the US will produce a record 5.35m short tons of beet in 2021/22.
• This is a 150k short ton increase from the September WASDE.
• The increase is surprising as the US beet crop was hit by drought during the summer.

Record Beet Production for the US?

• The United States Department of Agriculture (USDA) thinks the US will produce a record 5.35m short tons of beet in 2021/22, up 150k short tonnes from last month’s WASDE.
• This suggests that the beet coped well with the drought seen across the summer months.

• However, a lot of beet is yet to be harvested.
• Minnesota and North Dakota have more than 80% left to harvest, and both regions were seriously impacted by the drought.
• This could mean the USDA reduces its production estimate in a forthcoming WASDE release.

• There’s a greater risk at play, though; if it gets cold before harvesting has concluded, a lot of beet could get stuck in the ground.
• Despite these worries, 95% of the harvested beet in Minnesota and North Dakota has been rated ‘Fair to Excellent’, and so producers will be hoping operations are able to commence at a good rate.

Falling Sugar Consumption?

• The USDA thinks sugar consumption will be 31k short tons lower in 2021/22, even though 2020/21 saw the US’ hospitality industry hit hard by COVID restrictions.

• Despite this decline, we think imports will still be necessary as the USDA has reduced the Tariff Rate Quota from 1.80m short tons in September to 1.59m short tons today.

Other Opinions You Might Be Interested In…

• WASDE: USDA Reduces Mexico’s Market Access
• US Beet Production Hit by Drought

Explainers You Might Be Interested In…

• Czapp Explains: US Sugar Pricing and Quotas
• Czapp Explains: US Sugar Production and Consumption