USDA ERS: Sugar and Sweeteners Outlook March 14, 2024

Sugar and Sweeteners Outlook March 14, 2024

U.S. Supply Down on Lower Domestic Production and
Imports from Mexico

In the March 2024 WASDE, the U.S. 2023/24 sugar supply is lowered from last month by
105,000 short tons, raw value (STRV) to 14.416 million. This reflects increases in raw sugar
tariff-rate quota (TRQ) imports and cane sugar production that were offset by lower imports from
Mexico and reduced beet sugar production (table 1). Exports from Mexico are reduced from last
month by 133,000 STRV to 666,000, a 14-year low. Domestically sourced supply is down as
increased production of cane sugar is countered by a decrease in beet sugar.
On March 7, USDA increased the raw sugar TRQ by about 138,000 STRV (125,000 metric tons,
raw value in the Federal Register) using the authority given to the Secretary of Agriculture under
the Additional U.S. Note 5 of the Harmonized Tariff Schedule (HTS) Chapter 17. Since the U.S.
Trade Representative (USTR) has not published the country allocation, the projected TRQ
shortfall is maintained at 92,000 STRV. High-tier tariff sugar imports are unchanged and remain
at a record-high 715,000 STRV, overtaking Mexico for the first time as the second largest source
of U.S. imports. U.S. sugar use components are carried over this month—exports (160,000
STRV), deliveries for food and beverage use (12.450 million), and other deliveries (105,000).
With use unchanged at 12.715 million STRV, ending stocks are reduced by the same amount as
that of supply (105,000 STRV) to 1.701 million. The corresponding stocks-to-use ratio is 13.4
percent, down from last month’s 14.2 percent.

Vidalina Abadam, coordinator

DW Montgomery & Company has provided extensive market and contractual expertise within the sugar industry for over 70 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, and David Montgomery III