June 12, 2024

SUGAR: U.S. sugar supply for 2023/24 is decreased 34,257 short tons, raw value (STRV) to 14.377 million on lower production partially offset by an increase in imports. Beet sugar production is decreased 50,040 STRV mainly on lower sugar from desugared molasses forecast by processers and also on slightly higher beet pile shrink and slightly lower recovery. Imports from Mexico are reduced 31,434 STRV on a reduction in Mexico production of below 99.2 polarity sugar. More than offsetting is an increase in high tier tariff/Other sugar. High-tier raw and refined sugar are on pace to meet the combined total of 855,000 STRV estimated in the WASDE. The “Other” component is the raw sugar equivalent of refiners molasses imported by SMD cane sugar reporters as an input in the production of refined cane sugar. The molasses is reported by the U.S. Census under the HTS 1703.10.3000 and is consistent with Additional U.S. Note 10 that distinguishes it as molasses distinct from sugar. USDA/WAOB estimates the raw sugar-equivalent quantity of product used in refiners’ melt operations at a monthly average of 3,929 STRV. Extending this monthly average for the remaining 5 months of 2023/24 and the 12 months of 2024/25 increases High Tier/Other by 47,146 STRV over last month in both years. This inclusion in the supply balance leads to a correct calculation of the Direct Consumption Imports, a component of deliveries for human consumption in Use.