January 12, 2018

SUGAR: U.S. sugar supply for 2017/18 is increased by 72,353 short tons, raw value (STRV), mainly due to increases in expected cane sugar production partially offset by a decrease in beet sugar production. Louisiana cane sugar production for 2017/18 is increased by 130,000 STRV to 1.820 million due to a strong harvest campaign that is expected to extend into mid-January, according to industry reporting. Florida cane sugar production is increased by 39,038 STRV to 2.075 million based on processors’ estimates of sugar yield per acre made at the end of December. Beet sugar production for 2017/18 is decreased by 102,455 STRV to 5.257 million based on lower sugarbeet production reported by NASS. Additionally, beginning stocks are increased by 15,438 STRV based on inventory revisions submitted by processors to Sweetener Market Data. These supply increases are slightly offset by a reduction of 9,668 STRV due to fewer imports forecast to enter under FTA tariff-rate quotas. U.S. sugar use for 2017/18 is increased by a 50,000-STRV export increase consisting mostly of shipments to Mexico, part of which is expected to be under the U.S. re-export program. Ending stocks for 2017/18 are projected at 1.824 million STRV, implying a stocks-to-use ratio of 14.4 percent.

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