USDA ERS: Sugar and Sweeteners Outlook June 2019

Sugar and Sweeteners Outlook June 2019

Lower Expected Domestic Production Reduces

U.S. Sugar Production Slightly Higher for

2019/20 Based on Sugarbeet Planting Pace

The June World Agricultural Supply and Demand Estimates (WASDE) raised U.S. sugar production for 2019/20, as higher beet sugar production outweighed lower cane sugar expectations. Beet sugar production is also raised for 2018/19 due to higher early-season production from higher expected yields from the sugarbeet 2019/20 crop. No changes were made to the forecast use for either 2018/19 or 2019/20.

Mexico sugar production is raised for both 2018/19 and 2019/20. Coming into the final weeks of the Mexico sugarcane harvest campaign, the 2018/19 season is on pace to be well ahead of recent year’s totals. With limited growth in domestic markets and constraints on exports to the United States, shipments to the global market are expected to increase significantly from recent years to bring stock levels in line with historical averages.

In the Foreign Agricultural Service’s (FAS) initial projections for global sugar markets in 2019/20, world production and consumption are expected to increase at a steady rate. Global supplies are still relatively large in 2018/19 from the record production year of 2017/18. This still weighs on the global market, with major sugar-producing and trading countries continuing to respond to these market conditions. Looking forward to 2019/20, however, global sugar markets are expected to return to more stable conditions.

Michael McConnell, coordinator

DW Montgomery & Company has provided extensive market and contractual expertise within the sugar industry for over 60 years. Our family has now three generations working within the business and has grown to include a large variety of organic and natural ingredients. It is our pleasure to serve you and assist you in your purchasing needs.

All the best,

David Montgomery, Jr., Paul Montgomery, Andrew Montgomery, David Montgomery III, and Jody Payne