USDA ERS: Sugar and Sweeteners Outlook October 18, 2022

Sugar and Sweeteners Outlook October 18, 2022

Outlook for 2022/23 U.S. Sugar Supply Increased

The October 2022 WASDE raised the 2022/23 U.S. sugar total supply from last month by 162,000 STRV to 14.537 million STRV mostly on higher imports, as well as increased beginning stocks and production (table 1). Total imports for 2022/23 are up 129,000 STRV to 3.610 million, as the increases in raw and refined TRQs offset the reduction due to the larger estimated shortfall in raw sugar TRQ and the earlier entry of sugar under the calendar year- basis free trade agreement (FTA) TRQ. The larger 2022/23 beginning stocks mostly stem from a stronger than expected early cane sugar production in Louisiana‒accounted for in the 2021/22 ledger–and larger 2021/22 imports of Mexican and high-tier duty sugar than previously estimated. Increased sugar production in 2022/23 is driven by the USDA, NASS’ higher projections for acreage and sugarcane yield in Louisiana, which compensate for reduced beet sugar production due to lower than expected sugarbeet yield. With total use for 2022/23 unchanged at 12.665 million, ending stocks are increased by 162,000 STRV to 1.872 million STRV, thereby raising the stocks-to-use ratio to 14.8 percent from last month’s 13.5 percent.

Vidalina Abadam, coordinator

Adeline Yeh, contributor

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