USDA’s September month WASDE Report

According to USDA’s September month WASDE Report (World Agricultural Supply and Demand Estimates):

• Mexico sugar supply for 2022/23 is increased by 53,598 metric tons (MT) to 6.442 million on an increase in imports.
• Sugar stocks have decreased substantially in May-July driving domestic prices to historically high levels, incentivizing high-tier tariff imports.
• A wide range of imports between 215,000 and 292,000 MT are considered plausible and a mean level of 253,598 MT is estimated in the WASDE.
• Mexico sugar production for 2023/24 is lowered by 100,000 to 5.800 million MT due to the ongoing widespread drought.
• U.S. sugar supply for 2022/23 is raised by 90,589 short tons, raw value (STRV) on increased production and imports while use is decreased by 55,000 on lower deliveries partially offset by an increase in exports.
• Beet sugar production is increased 31,812 STRV on final August-July crop year production reported by processors in the SMD. The production estimate for August and September 2023 for sugarbeets harvested this season is unchanged.
• U.S. sugar supply for 2023/24 is decreased by 277,945 STRV on decreases in production and imports only partially offset by an increase in beginning stocks.
• Cane sugar production for 2023/24 in Louisiana is lowered by 371,403 STRV to 1.682 million.
• Sugar imports from Mexico are lowered by 201,750 STRV in anticipated accordance with the CVD Suspension Agreements administered by the DOC.
• Supply and use changes imply lower ending stocks of 1.714 million STRV for an ending stocks-to-use ratio of 13.5 percent.