U.S. sugar ending stocks are sufficient for just 7.6% of demand, USDA says
The United States Department of Agriculture (USDA) on Friday cut its projection for the sugar stocks-to-use ratio, a key indicator of the level of supply, to 7.6% for the 2022/23 season, from 10.1% in May, estimates of sugar production in the United States fell.
This means that the amount of sugar that will be available in the United States at the end of the 2022/23 season (October-September) would only be enough for 7.6% of the country’s total demand projected at 12.59 million tons. short ( ST).
In its monthly supply and demand report, the USDA projected US sugar production at 8.82 million (ST) in 2022/23, from 9.04 million ST in May.
The USDA has blamed delays in planting sugar beets as the main factor behind the drop in sugar production in the United States.
“The reduction (in production) is based on late plantings which imply a national sugar beet yield of 27.88 tonnes/acre, the lowest level since 2014/15, when similar delays in planting occurred. products,” the agency said.
American farmers have had problems with dry weather which has delayed planting. There were also crop shifts as grain prices soared. Beet sugar production is expected to drop to 4.8 million ST from 5.15 million ST in the previous harvest.
With this low level of supply, which had already pushed up sugar prices in the country in the previous season, analysts believe that the government is likely to increase imports in the coming months.
Source: Reuters (Reporting by Marcelo Teixeira; Editing by Will Dunham and Cynthia Osterman)