Sugar
U.S. 2014/15 beginning sugar stocks are increased 13,874 short tons, raw value (STRV) to 1.810 million based on revised processors’ estimates of 2013/14 cane sugar production and other miscellaneous adjustments that resulted in an increase to the ending stocks estimate for 2013/14. Imports for 2014/15 are increased by 36,524 STRV to 3.464 million, stemming mostly from sugar entering under free trade agreements that was previously expected to be imported in the first quarter of 2015/16. With no other changes, the 2014/15 ending stocks projection rises by 50,398 STRV to 1.700 million, implying a 13.9 percent ending stocks-to-use ratio.
Mexico 2014/15 sugar production is reduced by 101,372 metric tons (MT) to 6.050 million due to a slower than anticipated production pace, especially in the state of Veracruz that has experienced excessive precipitation in the first 3 months of 2015, with especially severe weather in March. Deliveries for human consumption are increased by 50,000 MT to 4.250 million, based on a strong pace-to-date through February. Exports to destinations other than the United States are reduced by 125,000 MT to 200,000 because of much lower world raw sugar prices than existed when certain contracts for export were originally negotiated. Exports to the United States are still forecast at 1.306 million MT, the maximum amount as set under the terms of the Agreement Suspending the Countervailing Duty Investigations on Sugar from Mexico, dated December 19, 2014. Ending stocks are projected residually at 975,069 MT, an increase of 26,372 from last month.
Source: WASDE