WASDE Report (February 9, 2017)
SUGAR: U.S. cane sugar production for 2016/17 is reduced by 72,803 short tons, raw value (STRV). Almost all the reduction is based on industry reporting in Florida indicating less sugarcane acreage and slightly lower yields than previously forecast. U.S. exports for 2016/17 are now projected at 75,000 STRV on indications of planned beet sugar exports of 50,000 this fiscal year. This increase is matched by an equivalent increase in raw sugar re-export imports. No change is made this month in deliveries for human consumption. Although, beet sugar deliveries have been strong through the fiscal year’s first quarter, bulk cane sugar deliveries are far below trend with significant year-over-year declines in deliveries to bakery/cereal, confectionery, and multiple and other food use manufacturers. Additionally, although projected imports from Mexico are unchanged from last month, there remains market uncertainty regarding availability of sugar imported from Mexico as a result of ongoing talks concerning the AD and CVD Suspension Agreements. Ending stocks for 2016/17 are projected at 1.808 million STRV, implying an ending stocks-to-use ratio of 14.8 percent, down from last month’s 15.4 percent. There are no changes to the Mexico 2016/17 sugar supply and use this month.