July 10, 2020

SUGAR: U.S. sugar supply for 2020/21 is increased 187,367 short tons, raw value (STRV) to 13.921 million based on an increase in beginning stocks and production only partially offset by a reduction in imports. An increase in beginning stocks of 140,070 STRV results from increases in 2019/20 FTA TRQ imports from the implementation of USMCA and in 2019/20 imports from Mexico. Combined national beet sugar production and cane sugar production in 2020/21 are increased by 85,000 STRV based on projected increases in area harvested reported in the NASS Acreage report. TRQ imports for 2020/21 are increased by the quantity of specialty sugar beyond the WTO minimum as announced by the Secretary of Agriculture (154,323 STRV) and by projected FTA imports from Canada under USMCA (30,581 STRV). Imports from Mexico are projected at 1.079 million STRV, a reduction of 222,607 from last month. Net imports for 2020/21 are thereby reduced 37,703 STRV. There are no changes to use. Ending stocks are projected at 1.656 million STRV for an ending stocks-to-use ratio of 13.5 percent.

Under the USMCA effective July 1, 2020, Canada is to receive a calendar year export allotment of 9,600 metric tons (MT) of refined beet sugar for the entry into the U.S. market. USTR set the allotment for the remainder of 2020 at 4,800 MT, one-half of the annual amount. The allotment for 2021 is assumed at the full statutory level. USTR also granted Canada 20 percent of the 181,437 MT additional refined sugar TRQ established in April before the implementation of the USMCA. The 20- percent level of any addition to the refined sugar TRQ is set out in the USMCA and only applies in this case to calendar year 2020. These allocated amounts are prorated on a quarterly basis across the final two quarters of 2020 and the first three quarters of 2021.

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Feb 6-8, 2020
Orlando, FL

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