USDA ERS: Sugar and Sweeteners Outlook February 2020

Sugar and Sweeteners Outlook February 2020

U.S. Sugar Supplies Tighten due to Lower Production in Both United States and Mexico

Mexico sugar production is lowered in the February World Agricultural Supply and Demand Estimates(WASDE) due to continued delays of the drought-affected 2019/20 sugarcane crop. Lower production translates to fewer available supplies for export—for both the United States and other countries. Domestic deliveries are unchanged from the previous month, remaining relatively flat from 2018/19 levels.

Fewer projected exports out of Mexico result in fewer expected U.S. sugar supplies. U.S. sugar imports are lowered, as reduced imports from Mexico are only partially offset by an increase in imports under quota programs due to the reallocation of the WTO raw sugar tariff-rate quota. No changes are made to projected U.S. sugar use for 2019/20. As a result, ending stocks are forecast to be relatively smaller for the year.

Michael McConnell, 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