USDA ERS: Sugar and Sweeteners Outlook December 15, 2021

Sugar and Sweeteners Outlook December 15, 2021

Stocks Revised Lower for 2020/21, Reduced for 2021/22

The December World Agricultural Supply and Demand Estimates (WASDE) revised the U.S. 2020/21 total sugar deliveries by 26,000 STRV to 12.341 million due to import data corrections for August in the Sweetener Market Data (SMD) report (table 1). This correction to deliveries resulted in ending stocks being lowered by a like amount to 1.700 million STRV. The net effect is a revised stocks-to-use ratio of 13.8 percent, which is down 0.3 percentage points compared with last month (table 1).

Lower stocks are also projected for 2021/22 as the lower beginning stocks, domestic sugar production, and imports from Mexico more than offset the 50,000-STRV increase in high-tier imports. With use unchanged at 12.305 million STRV, the resulting 2021/22 ending stocks-to- use ratio is 13.6 percent, which is 0.2 percentage lower than the revised 2020/21 ratio. Spot and futures prices for domestic refined sugar and raw cane sugar are holding close to levels that make high-tier imports economically feasible.

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