SUGAR: Sugar production for the fiscal year (FY) 2016/17 is increased 250,896 short tons, raw value (STRV) to 8.961 million resulting from increases made by NASS in the June 30 Acreage report. Sugarbeet planted area is forecast at 1.166 million tons, up slightly from last year and 0.6 mn percent above Prospective Plantings. Sugarbeet harvested area is projected at 1.149 million acres, an increase of 2.2 percent over the level used for projecting production in the June 2016
WASDE. Projected 2016/17 beet sugar production for the August/July crop year is increased 115,000 STRV to 5.333 million. With 11.5 percent of the crop expected to be harvested prior to nthe start of the fiscal year, production for FY 2016/17 is increased 101,774 STRV to 5.192 million. NASS projects sugarcane harvested area at 918,200 acres, up 3.5 percent from last year. That increase, along with sugar and yield in Texas returning to historical levels, implies an increase in 2016/17 cane sugar production of 149,000 STRV to 3.769 million.
Imports for 2016/17 are reduced by 408,090 STRV to 3.068 million. Reduced imports from Mexico totaling 387,109 STRV account for most of the decrease. Beginning stocks for 2016/17 mare reduced by 53,308 STRV due to lowered beet sugar production for 2015/16 and fewer= imports under tariff-rate quotas for raw sugar and certain free trade agreements for 2015/16. Ending stocks for 2016/17 are projected residually at 1.654 million STRV, implying an ending stocks-to-use ratio of 13.5 percent.
Beginning stocks for 2016/17 in Mexico are reduced 165,107 metric tons (MT) due to less 2015/16 production than projected last month and increased sugar for domestic consumption. Deliveries for consumption in 2016/17 are expected to increase in line with the 2015/16 increase by 100,508 MT. Exports to the United States are projected to decrease 331,302 MT to 1.173 million, based on changes made in this month’s July 2016 WASDE for the United States as per the Countervailing Duty (CVD) Suspension Agreement of December 19, 2014 (“Target Quantity of U.S. Sugar Needs”). Ending stocks for 2016/17 are projected residually at 1.275 million MT, up 65,687 as lower beginning stocks and increased domestic deliveries partially offset the\ reduction in exports.
Source: USDA WASDE